U.S. office and industrial loan delinquency rates worsen

TRD New York /
Jun.June 01, 2011 01:19 PM

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.”

At the end of May, 9.6% of all CMBS loans were delinquent, Trepp said, down slightly from 9.65% in April, which had been a record high.

“While there may be additional bumps along the way,” Clancy added, “we think the May numbers accurately reflect a leveling off in the market.”

The industrial delinquency rate spiked 120 basis points this month, boosting the rate to almost 12 percent. Six months ago, the rate was less than 7 percent. TRD


Related Articles

arrow_forward_ios
The special servicing rate has increased each month since the coronavirus pandemic hit the United States, and clocked a 55 basis point increase to 10.04 percent in August (iStock)

CMBS delinquencies fell, but hold the applause

CMBS delinquencies fell, but hold the applause
Trepp CEO Annemarie DiCola and Compstak founder Michael Mandel (iStock)

Trepp, CompStak form data-share partnership as their biggest competitor expands its reach

Trepp, CompStak form data-share partnership as their biggest competitor expands its reach
The Mountain States saw the fastest home-price growth of any region (Credit: iStock)

Millennials head west for housing, and institutional investors follow

Millennials head west for housing, and institutional investors follow
Trepp inks office lease at 600 Fifth

Trepp inks office lease at 600 Fifth

Trepp inks office lease at 600 Fifth
Here’s a look at NYC’s most haunted (securitized) properties

Here’s a look at NYC’s most haunted (securitized) properties

Here’s a look at NYC’s most haunted (securitized) properties
Meir Cohen (inset) and 1710 Broadway

Supertall site owners refi expired mortgage

Supertall site owners refi expired mortgage
10 most distressed properties in NYC

10 most distressed properties in NYC

10 most distressed properties in NYC
CMS delinquency rates fall for 12 straight months

CMS delinquency rates fall for 12 straight months

CMS delinquency rates fall for 12 straight months
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...