The percentage of U.S. commercial real estate loans 30 or more days delinquent or in foreclosure is 7.66%. This figure was 7.98% the previous month and 8.14% a year ago. The CMBS delinquency rate has dropped 268 basis points since reaching an all-time high of 10.34% in the summer of 2012.
Overall, there are currently $41.3 billion in delinquent CMBS loans nationwide, Trepp says. Special servicers have $49.6 billion in commercial real estate loans—just over 2,800—within their portfolios.
Loans that cured in November totaled about $2.2 billion, which resulted in 40 basis points of downward pressure on the delinquent loan percentage.
Another factor contributing to the rate decrease was that almost $1.2 billion in previously delinquent loans were resolved with losses. By removing these loans, the rate saw 22 basis points of improvement.
Meanwhile, loans that were delinquent but paid off without a loss in November totaled approximately $245 million. This caused a five-basis point drop in the delinquent loan percentage.
The rate will fall even further as special servicer CWCapital is expected to sell more than $3 billion of distressed assets and additional note sales from its portfolio.
“Removing over $3 billion of nonperforming assets from the delinquent loan category would result in a 50 basis point decrease in the rate, so a delinquency rate that threatens the 7% level may not be out of the question,” New York-based Trepp said in a press release. “Regardless of whether these sales hit in December or January, the CMBS delinquency rate should continue to improve in the near-term.”