September 5, 2019
The Trepp CMBS Delinquency Rate fell again in August, setting another new post-crisis low in the process. The August reading sits at 2.54%, which marks a month-over-month drop of eight basis points. The delinquency rate is down 110 basis points year-over-year. The all-time high of 10.34% was registered in July 2012.
“The concerns about the global economy and a possible U.S. recession have failed to have an impact thus far on the CMBS market,” said Manus Clancy, senior managing director at Trepp. “As volatility touched many markets in August, CMBS held steady: spreads saw only modest widening; lending and issuance continued at a healthy rate, and delinquencies continued to fall.”
Among the major property sectors, the largest rate drop occurred in the retail space, with a reading that dropped 28 basis points to 4.07%. On the lodging side, the delinquency rate also fell in August by 26 basis points to 1.54%. Multifamily delinquencies rose 35 basis points to 2.39%, and office delinquency rates also rose 12 basis points to 2.83% last month.
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