Thus far, the dreaded wall of maturities hasn’t impacted delinquencies to the degree that some had expected.
New York, New York (PRWEB) June 03, 2016
Trepp, LLC, the leading provider of information, analytics, and technology to the CMBS, commercial real estate, and banking markets, released its May 2016 US CMBS Delinquency Report (http://info.trepp.com/thank-you-may-2016-cmbs-delinquency-report) today.
Following an increase of just one basis point in April, the Trepp CMBS Delinquency Rate climbed up 12 basis points in May. The delinquency rate for US commercial real estate loans in CMBS is now 4.35%. The increase in May’s rate marks the third straight upsurge in the monthly delinquency reading. The rate is now 105 basis points lower than the year-ago level and 82 points lower since the beginning of the year.
“Thus far, the dreaded wall of maturities hasn’t impacted delinquencies to the degree that some had expected,” said Manus Clancy, Senior Managing Director at Trepp. “It’s still early in the game, but an 82-basis-point drop in the delinquency rate since the start of the year along with continued loan resolutions in the face of scanty new CMBS issuance are surely positive signs.”
The percentage of seriously delinquent loans, defined as 60+ days delinquent, in foreclosure, REO, or non-performing balloons, increased in almost the same increment as the overall delinquency rate. The rate of seriously delinquent loans jumped up 11 basis points to 4.24% in May. If defeased loans were removed from Trepp’s delinquency calculation, the 30-day delinquency rate would be 4.58%.
The industrial sector posted the largest improvement among delinquency rates for major property types in May. Though it is still the worst performing sector, the delinquency rate for industrial loans fell 23 basis points to 5.72%. The office sector climbed 21 basis points to 5.51%, the largest increase among major property types. Retail delinquencies dropped 16 basis points to 5.36% in May.
For additional details, such as delinquency status and historical comparisons, download the May 2016 US CMBS Delinquency Report (http://info.trepp.com/thank-you-may-2016-cmbs-delinquency-report). For daily CMBS commentary, follow @TreppWire on Twitter.
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).