The delinquency rate on commercial mortgage-backed securities (CMBS) dipped by 1 basis point in January to 6.56%, according to data from Trepp Inc. One year ago, the CMBS delinquency rate was 4.66%.
“This pullback follows six straight months of increases to the overall delinquency rate, during which the rate rose almost 120 basis points,” said Vivek Denkanikotte, research associate at Trepp. “The decrease in the overall rate was driven by the office sector, with the office rate falling 78 basis points to 10.23%. This was some welcome relief for the sector, which had reached an all-time high to end last year.”
However, the other four major property sectors recorded increases in their delinquency rates – the industrial delinquency rate was up by 17 basis points to 0.46%, the lodging delinquency rate saw an uptick of 9 basis points to 6.23%, the multifamily delinquency rate inched up 4 basis points to 4.62%, and the retail delinquency rate rose by 9 basis points to 7.52%.
