NEW YORK–The Trepp CMBS Delinquency rate surged in April 2024 after posting a slight decline the month prior, according to the company’s analysis.
Overall, the delinquency rate increased 40 basis points to 5.07%, the highest since September 2021 when the rate was 5.35%.
“The increase was driven by spikes in the office, lodging, and retail sectors, with more than a dozen loans with outstanding balances greater than $100 million becoming delinquent during April,” Trepp reported. “The size of the month-over-month increases for each of these three property sectors was the highest in almost a year.
“If we included loans that are beyond their maturity date but current on interest, the delinquency rate would be 5.84%, up 41 basis points from March,” Trepp added.
According to Trepp, the percentage of loans in the 30 days delinquent bucket is 0.23%, up seven basis points for the month. The company’s numbers assume defeased loans are still part of the denominator unless otherwise specified.
The Overall Numbers
Trepp’s latest analysis shows:
- The overall U.S. CMBS delinquency rate increased to 5.07%, an increase of 40 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.)
- Year over year, the overall US CMBS delinquency rate is up 198 basis points.
- The percentage of loans that are seriously delinquent (60+ days delinquent, in foreclosure, REO, or non-performing balloons) is now 4.84%, up 33 basis points for the month.
- If defeased loans were taken out of the equation, the overall headline delinquency rate would be 5.29%, up 39 basis points from March.
- One year ago, the US CMBS delinquency rate was 3.09%.
- Six months ago, the US CMBS delinquency rate was 4.63%.
The CMBS 2.0+ Numbers
Trepp further reported:
- The CMBS 2.0+ delinquency rate rose 39 basis points– at 4.96% – in April. The rate is up 208 basis points year- over-year.
- The percentage of CMBS 2.0+ loans that are seriously delinquent is 4.73%, up 33 basis points from the prior month.
- If defeased loans were taken out of the equation, the overall CMBS 2.0+ delinquency rate would be 5.19%, up 41 basis points for the month.
The full report is available here.
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