June 7, 2019
The CMBS delinquency rate has reached a post-financial crisis low once more, falling 16 basis points to 2.66% in May, said Trepp. The delinquency rate has decreased by 146 bps year over year and declined in 20 of the past 23 months since June 2017.
“The CMBS market has remained remarkably resilient in the face of recent volatility,” said Manus Clancy, Trepp senior managing director. “Spreads have widened, but only minimally, even though tariffs and trade rhetoric have taken their toll on other markets.”
May’s largest rate drop among major property sectors belonged to retail, with its delinquency reading dropping 33 bps to 4.29%. Conversely, multifamily delinquencies climbed 17 bps to 2.16% last month.
The lodging delinquency reading dropped 13 bps to 1.42%, and it remains the best performing major property type—a distinction it inherited from multifamily. The office delinquency rate also fell by 13 bps to 2.98%.
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