August's CMBS Loan Delinquency Rate Declines By Highest Amount Since February

CMBS delinquencies are on the decline for the first time since February, according to a report from California-based CRE analytics company Trepp.

Delinquency rates for US commercial real estate loans dropped eight basis points since July and are now at 4.68%—that's 77 basis points lower than the year-ago level.

Trepp research analyst Sean Barrie tells Bisnow the number of loans delinquent last month decreased by roughly $550M compared to July, and an additional $450M in CMBS loans was cured in August compared to the prior month.

The CMBS Delinquency Rate hit its peak in July 2012 at 10.3%, Sean says, but since then the rate has dropped as low as 4.15% in February this year.

Delinquent loans paid off in August amounted to $1B, and after removing the distressed assets from the total delinquent loans calculated, the rate dropped by 22 basis points.

"There have been periods of stagnancy and even increases since February," Sean says. "But by and large, the rate has been on a steady decline since 2012."

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's National Newsletters
Related Stories

What's At Stake For CRE In Tuesday's U.S. Midterm

The Data Center Election That Matters Isn't In Congress

TPG, ACORE Raise Billions For Opportunistic CRE Funds

Newmark Cuts Earnings Outlook Despite Record Third Quarter

Battered Mortgage REIT Suspends Dividend To Preserve Cash

From Pandemic Darling To Cautionary Tale: Pickleball Clubs Face A Reckoning After Betting Big On Retail Space

Weil Gotshal Wind-Down Leaves 830K SF Hole In America's Office Market

Blackstone Mortgage Trust Reports Unexpected Q3 Net Loss

Tyko Capital Sets New Record For Florida's Largest Construction Loan

Office Recovery Moving Faster Than Expected, CoStar Finds

How Microsoft, Coca-Cola And Amazon Are Adapting Their Offices For AI Age

CoStar To Acquire Aerial Imagery Company For $730M