2019 CMBS Delinquency Rates

The retail delinquency rate declined 28 basis points to 4.6 percent, the greatest improvement of all major property sectors in April, according to the Trepp CMBS Delinquency rate.
Source: Trepp

The Trepp CMBS Delinquency rate resumed its decline in April after a rare (and tiny) uptick in March. The April reading declined six basis points to 2.8 percent, hitting a new post-financial crisis low in the process. The reading is down 154 basis points year over year. Year to date, the rate is down 29 basis points.

The retail delinquency rate declined 28 basis points to 4.6 percent, the greatest improvement of all major property sectors in April. Retail remains the worst performing major property type. The CMBS 2.0+ delinquency rate climbed five basis points to 0.70% in April, while the CMBS 1.0 delinquency rate was 46.5 percent, a decrease of one basis point.

Manus Clancy is Senior Managing Director of Applied Data & Research.

—Posted on May 20, 2019


Source: Trepp

The Trepp CMBS Delinquency rate posted a rare increase in March. The March reading inched up one basis point to 2.9 percent, which marks the first uptick in five months and the second in the last 12 months. The rate is down 167 basis points year over year. Delinquencies started to abate after June 2017, when the reading was 5.8 percent. Since then, the rate has fallen in 18 of the last 21 months, showing how rare an increase has become. The all-time high of 10.3 percent was registered in July 2012. February’s reading of 2.9 percent is the lowest rate since the financial crisis. Delinquencies for loans in CMBS 2.0+ inched two basis points higher to 0.7 percent last month. That reading has risen by 10 basis points year over year. The CMBS 1.0 delinquency reading surged 164 basis points higher in March and now registers at 46.5 percent. After posting February’s greatest rate drop by property type, the retail sector featured March’s greatest increase as its reading jumped 13 basis points to 4.9 percent. The largest rate drop among major property sectors belonged to the apartment segment, as multifamily delinquencies slid 30 basis points to 2.0 percent last month.

Manus Clancy is Senior Managing Director of Applied Data & Research.

—Posted on Apr. 19, 2019


Source: Trepp

The Trepp CMBS Delinquency rate broke through the 3 percent threshold in February as the reading continues its steady decline. The February reading fell 15 basis points to 2.9 percent while hitting yet another post-crisis low.

The delinquency rate is 164 basis points lower year-over-year. The reading started to fall after the June 2017 report when CMBS delinquencies registered 5.8 percent. Since then, the rate has fallen in 18 of the last 20 months.

February’s greatest month-over-month improvement by major property type belonged to the office segment. The office reading shed 34 basis points last month and now clocks in at 3.1 percent.

Retail still has the worst performing rate among property types, but its reading fell once again in February. With its most recent decline of 15 basis points, the retail rate now sits at 4.8 percent and has improved in each of the last five months.

Although the overall CMBS 2.0+ rate dipped five basis points to 0.6 percent last month, the seriously delinquent reading for 2.0+ increased eight basis points to 0.6 percent. Delinquencies among CMBS 1.0 continue to slide as its overall rate dipped another 45 basis points to 44.8 percent.

Manus Clancy is Senior Managing Director of Applied Data & Research.

—Posted on Mar. 26, 2019


Source: Trepp

The Trepp CMBS Delinquency Rate opened 2019 on a positive note as the reading dropped again in January. The rate fell nine basis points from 3.1 percent to 3.0 percent in January, which represents a new post-recession low. The reading is down 181 basis points year-over-year. The delinquency rate started to improve consistently after June 2017. The CMBS 2.0+ delinquency rate rose 6 basis points to 0.7 percent in January. The percentage of 2.0+ loans that are seriously delinquent is now 0.5 percent, which is down 4 basis points month-over-month. For the second consecutive month, the industrial sector was the major property type which featured the greatest month-over-month improvement in its delinquency rate. The industrial reading dipped 34 basis points to 2.1 percent in January.

Manus Clancy is Senior Managing Director of Applied Data & Research.

—Posted on Feb. 13, 2019