The commercial mortgage-backed securities (CMBS) delinquency rate dipped by a single basis point to 7.85% in August, according to data from Trepp Inc. One year ago, the CMBS delinquency rate was 7.29%.
Trepp noted that several large loans became delinquent last month after failing to pay off at maturity. These included office towers in Chicago, Los Angeles, and Washington, DC, an office portfolio spanning Washington, DC and Northern Virginia, and a New Orleans hotel. However, their impact was offset by cures, including a large loan for a New York City property in Times Square classified as “other” that returned to performing status.
Delinquency rates increased across four of the five major property types in August. Lodging recorded the largest increase, rising 49 basis points to 5.84%, followed by retail’s rise by 24 basis points to 7.20%. The office sector rose nine basis points to 12.00% and industrial edged up one basis point to 1.14%. The multifamily sector remained unchanged at 7.69%.
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