US CMBS Delinquency Rate Plunges to Lowest Level in 15 Months

Share Article

Trepp has released its December 2017 CMBS Delinquency Report, which contains information on the reading’s sixth consecutive monthly decrease.

News Image
Another sharp drop in the delinquency rate helped cap off a stellar second half of 2017 for the CMBS market.

Trepp, LLC, a leading provider of information, analytics, and technology to the structured finance, commercial real estate, and banking markets, has released its December 2017 US CMBS Delinquency Report. The full report can be found here:    

The Trepp CMBS Delinquency Rate fell sharply in December, marking the sixth consecutive month in which the reading has decreased. The delinquency rate for US commercial real estate loans in CMBS is now 4.89%, a drop of 29 basis points from the November level. December’s rate drop is the largest improvement since January 2016, and the December reading is the lowest in 15 months.

“Another sharp drop in the delinquency rate helped cap off a stellar second half of 2017 for the CMBS market,” said Manus Clancy, Senior Managing Director at Trepp. “December’s rate decrease helped the reading finish lower year-over-year, a victory by any stretch of the imagination. The confluence of new issuance spiking in 2017, low market volatility, and a high volume of maturity resolutions ties a nice bow onto the year for CMBS players.”

A little more than $800 million in CMBS loans became newly delinquent in December, which was down from $1.1 billion in November. Those new delinquencies put 20 basis points of upward pressure on the reading. Roughly $835 million in notes were cured last month, and about $1.16 billion in previously delinquent CMBS loans were resolved with a loss or at par. These moves helped push the December rate lower by 20 and 28 basis points, respectively.

The retail sector experienced the largest month-over-month rate drop by major property type last month, as its reading fell 66 basis points to 6.13%. The industrial delinquency rate slid 43 basis points to 5.67% last month, and the multifamily reading decreased 35 basis points to 2.36%. The multifamily sector remains the best performing major property type.

For additional details, such as delinquency breakdowns and historical comparisons, download the full December 2017 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

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Sean Barrie
+1 212-754-1010
Email >
Visit website