August 7, 2020
Trepp’s CMBS delinquency rate posted its largest drop in more than four years during July, declining 72 basis points to 9.6%. However, Trepp also noted an increase in the percentage of CMBS deals in special servicing.
About 1.7% of loan delinquencies is represented by loans in the 30-day delinquency bucket while another 2.56% is now 60 days delinquent. Both of those numbers were sizable improvements from June. The 90-day delinquency rate rose from 0.29% in June to 2.65% in July.
The special servicing rate increased 121 bps to reach 9.49% in July. Trepp said this surge resulted mainly from an increase in the lodging and retail special servicing rates due to COVID-19.
The lodging special servicing rate clocked in at 24.30% in July, up from 20.47% in June. Retail special servicing came in at 16.04%, rising 180 bps from June after the previous month’s 493-bp increase.
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