NEW YORK CITY—The delinquency rate for CMBS fell to 4.89% in December, its lowest reading in 15 months, Trepp LLC said Wednesday. The 29-basis point drop was the largest in about two years, and also represented the sixth consecutive monthly decline in late-pays for CMBS.

In the 16 months between March '16 and this past June, the CMBS delinquency rate moved up 13 times. “However, the delinquency level has receded since June as bubble-year loans have passed their maturity date and been resolved,” according to Manus Clancy, senior managing director with Trepp. “Put another, simpler way: fewer loans are defaulting, and those that defaulted in recent years are being resolved away (often with losses).” Further declines in delinquencies could be in the cards this year, he adds.

December saw more than $800 million of CMBS loans became newly delinquent; conversely, $835 million in loans were cured last month, thereby exerting about the same level of downward pressure on the delinquency rate—20 bps—as the rate of upward pressure caused by the new delinquencies. About $1.16 billion in previously delinquent CMBS loans were resolved with a loss or at par in December, according to Trepp.