CMBS Delinquency Rate Posts Largest Decline...

According to the latest report from our friends from Trepp, LLC, the CMBS Delinquency has declined for 14 straight months.

The Trepp CMBS delinquency rate declined sharply in August 2021, the largest drop in six months. The August number represented a significant decline after several months of mostly modest improvements. After two large jumps in May and June 2020, the rate has fallen for 14 consecutive months.

The delinquency rate in August was 5.64%, a drop of 47 basis points from the July number.

The percentage of loans in the 30 days delinquent bucket is 0.41% – down 10 basis points for the month.

In terms of loans in grace period, 2.42% of loans by balance missed their August payment but were less than 30 days delinquent. That was down 51 basis points for the month

Some other overall statistics:

The percentage of loans with the special servicer fell to 7.79% in August from 8.14% in July.

For lodging loans, 17.40% were with the special servicer, representing a decline of 55 basis points in August.

In the retail segment, 14.18% of loans were in that category – a drop of 48 basis points July.

The percentage of loans on servicer watchlist climbed to 29.00% in August from 27.56% in July.

The Overall Numbers

• The overall US CMBS delinquency rate dropped 47 basis points in August to 5.64%. (The all-time high on this basis was 10.34% registered in July 2012.)
• The percentage of A/B loans (i.e. loans in grace period or beyond grace period) was 2.42% in August.
• Year over year, the overall US CMBS delinquency rate is down 338 basis points.

• Year to date, the rate is down 217 basis points.
• The percentage of loans that are seriously delinquent (60+ days delinquent, in foreclosure, REO, or non-performing
balloons) is now 5.23%, down 37 basis points for the month.
• If defeased loans were taken out of the equation, the overall 30-day delinquency rate would be 5.91%, down 49 basis points from July.
• One year ago, the US CMBS delinquency rate was 9.02%.
• Six months ago, the US CMBS delinquency rate was 6.80%.

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