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CMBS Delinquency Rate Down For Fourth Consecutive Month In October


CMBS delinquency rates fell for the fourth month in a row, experiencing the second-largest drop to have taken place in 19 months.

An estimated $660M in loans became delinquent in October. At the same time, approximately $750M in previously delinquent CMBS loans were resolved during the month, bringing the CMBS delinquency rate to 5.21% — down 19 basis points from the previous month, Trepp reports.

The delinquency rate climbed consistently between March 2016 and June 2017, moving up 13 times in total. The spike in delinquencies has since slowed as the massive wave of maturing loans settles. 

Going forward, the delinquency rate is expected to continue to trend lower as distressed loans are resolved and fewer loans from the large group of loans issued between 2006 and 2007 reach maturity.