After three consecutive months where the national commercial mortgage-backed securities delinquency rate was leveling off, the latest report from Trepp signaled the recovery is nowhere in sight.
In April, the CMBS delinquency rate for the percentage of loans that are delinquent by 30 or more days, in foreclosure or REO climbed 23 basis points to 9.7%. The 12-month rolling average was 18.5 basis points a month.
This is the largest jump since December 2010 and the highest in history for the country’s commercial real estate loans in CMBS.
The value of delinquent loans now exceeds $62.8 billion.
“With the delinquency rate showing very small increases in February and March, and CMBS lending beginning to pick up, most of us thought that the worst was behind the CMBS market,” said Manus Clancy, managing director of Trepp. “But instead, the month indicated that the ride to recovery won’t be without some bumps along the way.”
All commercial property types experienced month-to-month increases, except lodging. Multifamily properties was the worst performer as it was up 56 basis points to a 16.77% delinquency rate, while industrial increased by 51 points with a rate now at 10.76%, retail increased by 43 points with a rate over 8% for the first time, and office saw a 7 point increase in its delinquency rate to 7.2%.
Lodging experienced a 52 basis point month-over-month decrease in its delinquency rate, dropping it to 15.45%.
