US CMBS Delinquency Rate Nears 5%, Lodging Rate Falls Below 3%

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Trepp released its November 2015 US CMBS Delinquency Infographic report today, which highlights a sizable drop in delinquencies and significant improvements by property type.

The Trepp US CMBS Delinquency Rate is 67 basis points lower than the year-ago level.

While industry optimists had hoped for a November StuyTown loan resolution, the timing has been further pushed off.

Trepp LLC, the leading provider of information, analytics and technology to the CMBS, commercial real estate, and banking markets, released its November 2015 US CMBS Delinquency Infographic today (available at http://info.trepp.com/november-2015-cmbs-delinquency-infographic).

The Trepp CMBS Delinquency Rate improved for a third straight month, falling ten basis points during November. The delinquency rate is now 5.13%, which is the lowest level since October 2009. Year-to-date, delinquencies for US commercial real estate loans have fallen 62 basis points.

In November, slightly less than $1 billion in loans became newly delinquent. About $450 million in loans were cured last month while almost $1.1 billion in loans that were previously delinquent paid off with a loss or at par. There are now $26.4 billion in delinquent CMBS loans.

“While industry optimists had hoped for a November StuyTown loan resolution, the timing has been further pushed off,” said Joe McBride, Research Associate at Trepp. “A mezzanine lender filed a lawsuit against the special servicer to reduce the payment that would go to the special servicer upon final resolution. As a result, multifamily delinquencies did not experience the awaited 60-basis-point drop.”

The industrial and lodging delinquency rates had the greatest month-over-month improvement, falling 29 and 42 basis points, respectively. The lodging sector remains the best performing major property type, with a delinquency rate of just 2.75%. Until the StuyvesantTown/Peter Cooper Village loan is resolved, multifamily remains the worst performing property type with a delinquency rate of over 8%.

For additional details, such as delinquency status and historical comparisons, download the November 2015 US CMBS Delinquency Infographic at http://info.trepp.com/november-2015-cmbs-delinquency-infographic. For daily CMBS commentary, follow @TreppWire on Twitter.

About Trepp
Trepp, LLC, founded in 1979, 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 web-based tools and insight they need to increase their operational efficiencies, information transparency and investment performance. Trepp serves its clients with products and services to support trading, research, risk management, surveillance and portfolio management. Trepp is wholly-owned by dmgi, a division of the Daily Mail and General Trust (DMGT).

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Joe McBride
Trepp
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