The delinquency rate among KBRA-rated U.S. commercial mortgage-backed securities (CMBS) during August reached 4.16%.
August’s delinquency rate was a 23 basis point increase from July, which followed a 34 basis point spike from June. However, the total delinquent and specially serviced loan rate had a smaller 1 basis point month-over-month increase, reaching 6.45% as nearly $900 million of last month’s $18.1 billion of specially serviced loans were returned to the master servicer or liquidated.
KBRA added that CMBS loans totaling $1.8 billion were either transferred to special servicing or became newly delinquent in August, with 32.8% ($603.9 million) facing imminent or actual maturity default. All property types, excluding retail and industrial, have seen an increase in the month-over-month delinquency rate.
The office sector continued to have the highest exposure, accounting for 41.4% ($762.3 million) of the newly specially serviced and newly delinquent loans, while retail came in second at 26.6% ($489.1 million), and mixed-use was third at 15.4% ($283.8 million).