The commercial mortgage-backed securities (CMBS) delinquency rate rose 28 basis points to 3.90% in June, according to new data from Trepp Inc.
This new increase follows last month’s uptick in delinquencies to its highest rate in 14 months. The overall CMBS delinquency rate is up 70 basis points year-over-year and up 86 basis points year-to-date.
“The increase was driven by a large jump in hotel delinquencies,” said Manus Clancy, senior managing director at Trepp, noting that the sector jumped 110 basis points to a delinquency rate of 5.35.%. “That was primarily a result of one big single-asset, single-borrower (SASB) hotel loan that missed its balloon date. Office delinquencies rose another 48 basis points and the rate for that segment is now 4.50%.”
The only commercial property sector that did not experience a delinquency rate upswing was retail, which fell 19 basis points to 6.48%. The multifamily delinquency rate was up 13 basis points to 1.59% and the industrial delinquency rate inched up 3 basis points to 0.42%.
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