The delinquency rate for commercial mortgage-backed securities (CMBS) rose for the first consecutive month during July, with a 10-basis-point uptick to 7.23%. Year over year, the overall CMBS delinquency rate is up 180 basis points from 5.23%.
According to data from Trepp Inc., July’s overall delinquent balance was $43.3 billion, and the outstanding balance was $598.9 billion – increases from $42.3 billion and $593.4 billion, respectively, in June.
“Across property types, rate movement was rather limited, with none of the five major property types moving higher or lower by more than 25 basis points,” said Vivek Denkanikotte, Trepp research associate. “The multifamily rate was the only one to increase, rising 24 basis points to 6.15%. Both lodging and retail experienced modest declines, with lodging down 22 basis points to 6.59% and the retail rate receding 16 basis points to 6.90%.”
Among the other property sectors, the industrial delinquency rate inched up by 1-basis-point to 0.52% and the office delinquency rate of 10.91% was the result of a 5-basis-point decline.
