US CMBS Delinquency Rate Continues to Fall

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Trepp has released its August 2017 CMBS Delinquency Report today, which highlights the second consecutive monthly rate decrease.

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After enduring some notable delinquency rate increases throughout 2016 and 2017 which were driven by the wave of maturities, the worst may now be behind us.

Trepp, LLC, a leading provider of information, analytics, and technology to the structured finance, commercial real estate, and banking markets, released its August 2017 US CMBS Delinquency Report today. The full report can be found here: http://info.trepp.com/august-2017-cmbs-delinquency-report-press-release.

The Trepp CMBS Delinquency Rate dropped again in August, and the reading has – for now – officially recovered from its huge jump in June. The delinquency rate for US commercial real estate loans in CMBS is now 5.44%, a decrease of five basis points from July. The August 2017 rate is now 76 basis points higher than the year-ago level.

“After enduring some notable delinquency rate increases throughout 2016 and 2017 which were driven by the wave of maturities, the worst may now be behind us,” said Manus Clancy, Senior Managing Director at Trepp. “The volume of maturing debt coming due every month has begun to subside, and previously distressed debt continues to be resolved at a healthy clip. All these factors bode well for a much smoother rest of 2017 – although, there could be some bumps along the way.”

The monthly total of fresh delinquencies continues to fall, as only about $1.1 billion in CMBS loans turned newly delinquent in August. More than $1.0 billion in previously distressed debt was resolved with a loss or at par last month, while over $400 million in previously delinquent loans were cured.

Of all major property types, the industrial sector posted the largest rate decrease in August as its reading fell 41 basis points to 6.55%. The lodging sector’s rate shed 19 basis points to 3.49%. The only sector with a higher month-over-month rate was the office segment, as its reading crawled up seven basis points to 7.31%.

For additional details, such as delinquency status and historical comparisons, download the August 2017 US CMBS Delinquency Report: http://info.trepp.com/august-2017-cmbs-delinquency-report-press-release. For daily CMBS commentary, follow @TreppWire on Twitter.

About Trepp
Trepp, LLC, founded in 1979, is a leading provider of data, analytics, and technology solutions to the global securities and investment management industries. Trepp specifically serves three key sectors: structured finance, commercial real estate, and banking to help market participants meet their objectives for surveillance, credit risk management, and investment performance. Trusted by the industry for the accuracy of its proprietary data, Trepp provides clients sophisticated, comprehensive models and analytics. Trepp is wholly owned by dmg Information, the business information division of Daily Mail and General Trust (DMGT). For more information, visit http://www.Trepp.com.

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Sean Barrie
Trepp
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