Office and industrial loan delinquency rates are continuing to worsen as figures improve for all other major property types, according to the May U.S. CMBS Delinquency Report released today by Trepp.

The U.S. commericial mortgage-backed security delinquency rate fell slightly in May with the percentage of loans 30 or more days delinquent, in foreclosure or real-estate owned declining 5 basis points to 9.6 percent. Although relatively small, the decline is actually the biggest rate drop for commercial real estate loans in CMBS in two years, the report reveals.

“Last month, the delinquency rate posted its biggest rate of increase since late 2010 — a 23 basis point jump,” said Manus Clancy, managing director of Trepp. “The increase took many CMBS pros by surprise as it came after three consecutive months of improving results.” TRD [more]

From left: 478 Third Avenue in Manhattan (source: PropertyShark) and 10 Metrotech Center in Brooklyn

The volume of delinquent commercial mortgage-backed securities in the U.S. rose to a staggering $61.4 billion last month, pegging the delinquency rate at a record-high 9.34 percent, according to a new report from real estate analytics firm Trepp. “While the rate continues to head higher, optimists can point to the fact that the rate of increase is significantly smaller than it was in the prior two months,” said Manus Clancy, managing director at Trepp. “Pessimists can counter that the jump comes despite the fact that new issues continue to make their way into the calculation and servicers continue to resolve troubled loans.”
After all but disappearing in the aftermath of the real estate crash, the CMBS market has already begun to rebound, with, by Trepp’s count, $12.7 billion in issues in 2010. Moody’s Investors Service recently projected that figure would rise to $37 billion this year. The Real Deal chronicled the reincarnation of the nation’s CMBS market in the January print magazine.

But in New York City, those fresh CMBS issues don’t appear to have made a dent in the delinquency rate yet. [more]

The Riverton Houses apartment complex in Harlem was reappraised at $108 million, less than half the value of its $225 million mortgage, according to a report today from commercial mortgage tracking firm Trepp. The property has now lost 68 percent of its value compared to its appraisal value of $340 million in January 2007, according to a source. Comments

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