NEW YORK–The Trepp CMBS Delinquency rate dropped slightly in March, declining four basis points to 4.67%.
According to Trepp, the decline was almost exclusively due to the continued improvement in the retail sector as it notched its fourth consecutive monthly decline. The retail delinquency rate declined 47 basis points in March to 5.56%.
“Ironically, the office sector was one of only two sectors that saw a decline in the delinquency rate,” Trepp reported.
The office delinquency rate declined five basis points to 6.58%.
“If we included loans that are beyond their maturity date but current on interest, the delinquency rate would be 5.43%, down 26 basis points from February,” according to Trepp.
The percentage of loans in the 30 days delinquent bucket is 0.16%, down 14 basis points for the month. Trepp’s numbers assume defeased loans are still part of the denominator unless otherwise specified.
The Overall Numbers
According to Trepp, its analysis shows that through March:
- The overall US CMBS delinquency rate dropped to 4.67%, a decline of four basis points for the month. (The all-time high on this basis was 10.34% registered in July 2012. The COVID-19 high was 10.32% in June 2020, Trepp said.)
- Year over year, the overall US CMBS delinquency rate is up 158 basis points.
- The percentage of loans that are seriously delinquent (60+ days delinquent, in foreclosure, REO, or non-performing balloons) is now 4.51%, up 10 basis point for the month.
- If defeased loans were taken out of the equation, the overall headline delinquency rate would be 4.90%, down 2 basis points from February.
- One year ago, the U.S. CMBS delinquency rate was 3.09%.
- Six months ago, the US CMBS delinquency rate was 4.39%.
The CMBS 2.0+ Numbers
Trepp said CMBS 2.0+ delinquency rate remained unchanged – at 4.57% – in March. The rate is up 170 basis points year-over-year.
In addition:
- The percentage of CMBS 2.0+ loans that are seriously delinquent is 4.40%, up 14 basis points from the prior month.
- If defeased loans were taken out of the equation, the overall CMBS 2.0+ delinquency rate would be 4.78%, down one basis point for the month.
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