The delinquency rate for commercial mortgage-backed securities (CMBS) inched up by one basis point to 7.55% in May, according to new data from Trepp Inc. One year ago, the CMBS delinquency rate was 7.08%.
Five large loans accounted for $1.86 billion of the $4.04 billion in newly delinquent loans: two New York City-based loans (a Times Square ground lease loan and a SoHo mixed-use asset), an Orlando hotel portfolio, a suburban New Jersey regional mall, and a Richmond CBD office property.
At the property-type level, two of the five major sectors recorded upswings in their delinquency rates. The industrial sector rose 35 basis points to 1.31%, while Trepp attributed to by several newly delinquent manufacturing and logistics delinquencies, while the retail sector increased 30 basis points to 6.61% due to multiple regional malls and shopping centers becoming delinquent.
On the flip side, the multifamily sector posted the largest decrease with a drop of 76 basis points to 6.95%. The office sector decreased 16 basis points to 11.53% and the lodging sector was down 51 basis points to 6.01%.
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