CMBS DELINQUENCY RATE DROPS BY FIVE BASIS POINTS

CMBS DELINQUENCY RATE DROPS BY FIVE BASIS POINTS

The commercial mortgage-backed securities (CMBS) delinquency rate dropped by five basis points in November to 4.58%, according to new data from Trepp LLC.

While the overall rate was down, the office sector delinquency rate spiked by 33 basis points to 6.08% while the lodging delinquency rate jumped 45 basis points to 5.21%. But these spikes were offset by a major decline in the industrial delinquency rate, which plummeted by 218 basis points to 0.38%.

“As we noted last month, one large industrial loan that went delinquent influenced the numbers considerably and blew up what was previously an incredibly low delinquency rate for that segment,” said Manus Clancy, senior managing director at Trepp. “That specific loan flipped back to current in November which means, in short, that while the industrial rate tumbled, the average rate on the remaining property types moved higher.”

Among the other commercial real estate sectors, the multifamily delinquency rate fell 18 basis points in November to 2.46% while the retail delinquency rate inched up two basis points to 6.57%.