December 5, 2018
The overall delinquency rate for U.S. commercial real estate loans dropped in November after it climbed in October. New research by Trepp showed the CMBS rate is now 3.33%, a decrease of nine basis points from the October level.
The Trepp Delinquency rate for November 2018 is 185 basis points lower than the year-ago level, and so far this year it has fallen 156 basis points. Trepp reports the reading for November also represents a new post-financial crisis low. The delinquency rate’s peak of 10.34% was measured in July 2012.
Trepp wrote in its report, “the delinquency rate began to fall with consistency after June 2017 when its reading clocked in at 5.75%. Fortunately, the fabled Wall of Maturities entered its final stages around that time. The rate has now dropped in 15 of the 17 months from July 2017 to November 2018.”
Other key Trepp findings included:
- The percentage of loans seriously delinquent (60+ days delinquent, in foreclosure, REO, or non-performing balloons) is now 3.28%, down 10 basis points for the month.
- If defeased loans were taken out of the equation, the overall 30-day delinquency rate would be 3.47%, down eight basis points from October.
- A year ago, the U.S. CMBS delinquency rate was 5.18%.
- Six months ago, the U.S. CMBS delinquency rate was 4.12%.
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