The commercial mortgage-backed securities delinquency rate continued its year-long improvement in October, with another big improvement predicted for November, according to Trepp.
The rate of U.S. commercial real estate loans embedded in CMBS fell 5 basis points in October to 5.23%, compared to September. That represents a 52-basis-point decline for the year, according to Trepp.
About $1.4 billion of CMBS loans became newly delinquent in October. Total delinquencies stood at $27 billion.
Trepp predicted another big improvement in November, as Blackstone Group's $5.3 billion acquisition of the Stuyvesant Town/Peter Cooper Village housing project in Manhattan will produce the resolution of a defaulted $3 billion loan.
"The removal of StuyTown from the list of distressed assets alone should lead to a 60-basis-point drop in the delinquency rate," Manus Clancy, a senior managing director at Trepp, said in a news release.
In October, four of the five major property sectors saw improvements in their delinquency rates. Lodging and office loans posted the biggest rate of improvement. Industrial loans was the only category to worsen.
