US CMBS Delinquency Rate Resumes Climb in September

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Trepp has released its September 2016 CMBS Delinquency Report and Infographic, highlighting the sixth rate increase in the last seven months.

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As the CMBS market continues to work through the wall of maturities, it’s a positive sign that delinquencies have been inching, not racing up.

Trepp, LLC, a leading provider of information, analytics, and technology to the CMBS, commercial real estate, and banking markets, released its September 2016 US CMBS Delinquency Report today. The report and infographic can be found here:

The Trepp CMBS Delinquency Rate increased in September, marking the sixth time the reading has moved higher in the last seven months. The delinquency rate for US commercial real estate loans in CMBS is now 4.78%, a jump of 10 basis points from August. The rate is 50 basis points lower than the year-ago level and 39 basis points lower since the beginning of the year.

In September, CMBS loans that were previously delinquent but paid off with a loss or at par totaled over $850 million. More than $500 million in loans were cured last month, but almost $1.3 billion in CMBS loans became newly delinquent in September.

“As the CMBS market continues to work through the wall of maturities, it’s a positive sign that delinquencies have been inching, not racing up,” said Manus Clancy, Senior Managing Director at Trepp. “There was some spread widening in September which bears monitoring in the future. But with Treasury rates and spreads where they are, we are optimistic that future upticks in delinquency levels will be relatively benign.”

The percentage of seriously delinquent loans, defined as 60+ days delinquent, in foreclosure, REO, or non-performing balloons, increased along with the overall delinquency rate. The rate of seriously delinquent loans moved up nine basis points for the month to 4.67%. If defeased loans were removed from Trepp’s delinquency calculation, the 30-day delinquency rate would be 4.99%.

The delinquency rate for the industrial sector is the only reading among major property types to decrease in each of the past four months. The industrial delinquency rate is now 5.28% after dropping 29 basis points in September, the largest decrease among major property types last month. For September, the largest rate increase by property type belonged to the office sector. The office reading jumped 30 basis points to 6.33% and office loans remain the worst performing property type.

For additional details, such as delinquency status and historical comparisons, download the September 2016 US CMBS Delinquency Report: 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

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