The delinquency rate for commercial mortgage-backed securities (CMBS) soared in November by 42 basis points to 6.40%, according to new data from Trepp Inc. One year ago, the delinquency rate was at 4.58%.
Trepp attributed the upswing to substantial increases in the delinquency rates for the office, multifamily and lodging property sectors. The office delinquency rate spiked by 101 basis points to 10.38 – this accounted for 60% of the net change in delinquent loan amount in November.
The multifamily delinquency rate rose 94 basis points to 4.18% this month, which Trepp blamed mostly on a “large portfolio single-asset, single-borrower (SASB) loan that recently transferred to the special servicer due to maturity default.” As for the lodging sector, a pair of portfolio SASB loans defaulted at maturity in November, which fueled most of the 83-basis-point increase to 6.92% for the month.
As for the remaining sectors, the industrial delinquency rate remained unchanged in November at 0.32% while the retail delinquency rate decreased 25 basis points to 6.57%.
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