US CMBS Delinquency Rate Declines Sharply, Continuing Year-Long Trend

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Oct 01, 2013, 12:45 ET

NEW YORK, Oct. 1, 2013 /PRNewswire/ -- Trepp, LLC, the leading provider of information, analytics and technology to the CMBS, commercial real estate, and banking markets, released its September 2013 US CMBS Delinquency Report today (available at http://www.trepp.com/knowledge/research).

(Photo: http://photos.prnewswire.com/prnh/20131001/PH89967-a)

(Photo: http://photos.prnewswire.com/prnh/20131001/PH89967-b)

The delinquency rate for US commercial real estate loans in CMBS fell for the fourth consecutive month to 8.14%. The September delinquency rate marks a 24-basis-point decline since August's reading, and an improvement of 185 basis points from one year ago. This month's level is the lowest Trepp delinquency rate in three years, since July 2010.

There were $1.7 billion in new delinquencies in September; a sharp decline from the $2.5 billion August total. There are currently $44 billion in delinquent US CMBS loans, excluding loans that are past their balloon date but current on their interest payments.

Leading to this month's improvement in the overall CMBS delinquency rate were $1.9 billion of loans that cured in September. Loan resolutions totaled just under $873 million for the month, which was one of the lowest levels seen in recent months. In August, loan resolutions totaled just over $1 billion.

"The CMBS market managed to shrug off concerns over QE tapering, Syria, and impending government budget issues in September," said Manus Clancy, Senior Managing Director at Trepp. "Supporting the improvement in the rate was a slowdown in new delinquencies and the addition of new deals to the overall loan pool."

Among the major property types, retail continues to be the best performer, while industrial remains the worst. The office delinquency rate showed the best month to month improvement, with a 29-basis-point drop, while lodging loans saw a 12-basis-point increase.

For additional details, such as historical delinquency rates, delinquency status, and delinquency rates by major property type, request the September 2013 US CMBS Delinquency Report at http://www.trepp.com/knowledge/research. For daily CMBS commentary and credit events, register for TreppWire or follow Trepp on Twitter.

About Trepp, LLC
Trepp, LLC is the leading provider of information, analytics and technology to the CMBS, commercial real estate and banking markets. Trepp provides primary and secondary market participants with the tools and insight they need to increase their operational efficiencies, information transparency and investment performance. For more information, visit www.trepp.com.

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