The commercial mortgage-backed securities (CMBS) delinquency rate returned above the 5% mark in June, according to new data from Trepp LLC.
The delinquency rate increased 38 basis points to 5.35% last month, which marked the fourth upswing in the CMBS delinquency rate in the last six months. Year-over-year, the overall CMBS delinquency rate is up by 145 basis points.
“The net increase in delinquent loans in June across the five major property types was just shy of $2 billion, with the office sector accounting for half of the net increase,” said Stephen Buschbom, research director at Trepp. “There was roughly $1.87 billion in newly delinquent office loans during the month which was offset by roughly $900 million in office loans that were 30-plus days delinquent in May but were no longer delinquent in June.”
Among the commercial property sectors, the office delinquency rate increased 61 basis points to 7.55%, the retail delinquency rate increased 48 basis points to 6.42%, the industrial delinquency rate increased 12 basis points to 0.62%, the lodging delinquency rate increased 10 basis points to 6.32% and the multifamily delinquency rate increased 66 basis points to 2.36%.
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