The commercial mortgage-backed securities (CMBS) delinquency rate dropped by 16 basis points to 4.25% in August, according to new data from Trepp Inc. This marked the second decline in the last six months.
“For four of the five major commercial real estate (CRE) property types, the rate inched up in August,” said Manus Clancy, senior managing director at Trepp. “In addition, the improvement in the hotel delinquency rate was driven by one large hotel loan seeing its status change modestly. This month’s data has a lot of nuances, so we encourage readers to parse and analyze it carefully.”
The lodging delinquency rate fell 54 basis points to 5.31% in August while the office delinquency rate climbed 11 basis points to 5.07%, the greatest monthly increase.
The industrial delinquency rate inched up two basis points to 0.31%, while the multifamily delinquency rate rose one basis point to 1.84%. and the retail delinquency rate also inched up by one basis point to 6.87%.