The delinquency rate for commercial mortgage-backed securities (CMBS) tumbled by 20 basis points in June to 7.35%, according to new data from Trepp LLC. One year ago, the overall CMBS delinquency rate was 7.13%
Trepp attributed the drop to the lodging sector, which posted a 78 basis points decline to 5.22%. This drop was attributed to the cure of a large Florida hotel portfolio loan and other lodging payoffs that outpaced the volume of lodging delinquencies. The industrial sector also posted a downturn, declining 11 basis points to 1.20% as cures and limited new inflows helped sink the delinquency rate.
“The five largest newly delinquent loans accounted for $998.9 million of the $2.64 billion in newly delinquent loans, including a super-regional mall in Southern California, a regional mall in New Hampshire, an office complex in New York, a mixed-use tower in Minneapolis, and a Manhattan multifamily property,” said Thomas Taylor, senior manager for research at Trepp.
The retail sector posted the largest delinquency rate increase, rising 29 basis points to 6.60%, while the multifamily sector rose by 29 basis points to 7.27% and the office sector inched up six basis points to 11.47%.
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