The delinquency rate for commercial mortgage-backed securities (CMBS) dropped for the second consecutive month after six months of increases, according to data from Trepp Inc.
February’s overall delinquency rate decreased 26 basis points to 6.30%. One year ago, the CMBS delinquency rate was 4.71%, a difference of 159 basis points.
“The decrease in the overall rate was driven again by the office sector, with the office rate falling 45 basis points to 9.78%,” said Vivek Denkanikotte, Trepp research associate. “This continues to be a welcome relief for the sector, which reached an all-time high to end last year.”
The only sector to record an uptick in its delinquency rate was lodging, with a 20 basis points spike to 6.43%. Decreases were recorded in the industrial sector (down 12 basis points to 0.34%), the multifamily delinquency rate (down 16 basis points to 4.46%) and the retail delinquency rate (down three basis points to 7.49%).
