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WASHINGTON, D.C. — Delinquency rates for commercial and multifamily mortgage loans continued to decline in the second quarter of 2015, according to the Mortgage Bankers Association’s (MBA) Commercial/Multifamily Delinquency Report. “As commercial property incomes and values continue to climb, and financing remains plentiful, loan performance continues to improve as well,” said Jamie Woodwell, MBA’s vice president of commercial real estate research. “Commercial and multifamily mortgage delinquency rates were down broadly in the second quarter, with highlights including the lowest 90-plus-day delinquency rate on bank-held multifamily loans since the series began in 1993, and 60-plus-day delinquency rates below 0.06 percent for loans held by life companies, Fannie Mae and Freddie Mac.” The MBA analysis looks at commercial/multifamily delinquency rates for five of the largest investor-groups: commercial banks and thrifts, commercial mortgage-backed securities (CMBS), life insurance companies, Fannie Mae, and Freddie Mac. Together these groups hold more than 80 percent of outstanding commercial/multifamily mortgage debt. Delinquency rates for each group at the end of the second quarter based on the unpaid principal balance of loans were: Banks and thrifts (90 or more days delinquent or in non-accrual): 0.9 percent, a decrease of 13 basis points from the first quarter of 2015 Life company portfolios (60 …

Despite recent volatility in the international stock markets, commercial real estate performance remains high, according to a recent report by Marcus & Millichap. The recent devaluation of China’s currency, coupled with the collapse of the Shanghai Stock Exchange, struck U.S. equity markets, driving down the S&P 500 by nearly 10 percent in one week and pushing the S&P’s Volatility Index to its highest level since 2011. Commercial real estate, however, the report says, continues to outperform due to increased investment, a tightening unemployment rate and generational trends. According to Marcus & Millichap’s special report, the U.S. economy has added nearly 1.5 million jobs through June of this year, and falling gas prices and rising wage pressure will continue to increase discretionary income.   Additionally, rising consumption and emergence of Internet retail will boost industrial demand for storage and supply-chain management in major hubs and local markets. Vacancy rate nationwide for industrial properties has reached its tightest level since 2000, according to the report, contracting to 6.9 percent on steady quarterly absorption in excess of 50 million square feet. Office vacancy, too, edged lower to 15.3 percent in the second quarter, as the sector benefited from still-limited construction. The retail vacancy …

Capitalization rates within the single-tenant, net lease dollar store sector — which includes Dollar General, Dollar Tree and Family Dollar — compressed 50 basis points nationally from the second quarter of 2014 to the second quarter of 2015, according to the “Net Lease Dollar Store Report” produced by The Boulder Group. Median asking cap rates at Dollar General stores nationally compressed 25 basis points, falling from 6.75 percent to 6.5 percent, during the 12-month period; Dollar Tree saw median asking cap rates decrease 10 basis points, from 7 percent to 6.9 percent; and median asking cap rates at Family Dollar stores fell 100 basis points, from 7.5 percent to 6.5 percent. The significant decrease in cap rates for Family Dollar can be attributed to its recent lease structure change, according to The Boulder Group. Previously, leases for newly constructed Family Dollar stores were structured as a double net lease for a period of 10 years and did not contain rental escalations in the primary term. The new standard lease for newly constructed Family Dollar properties is a triple net lease for a period of 15 years and contains rental escalations every three years, or in the eleventh lease year of the primary …

Investor demand and sales transaction volume for healthcare real estate have reached historic heights, according to an analysis of deal velocity in the first half of 2015 conducted by Brown Gibbons Lang & Co., a Cleveland-based investment banking and advisory firm. The details are contained in the firm’s “Healthcare & Life Sciences Insider” report.

IRVINE AND SILICON VALLEY, CALIF. — Four of the top five office markets for investments are located on the West Coast, according to a new report by Auction.com. The top markets for buying offices, from first to fifth, are located in San Jose, Calif.; San Francisco; Seattle; Orange County, Calif.; and New York. The top office acquisition markets as determined by Auction.com are based on projected net operating income growth, vacancy improvement, rent growth and valuations. Much of the strength of West Coast office growth is abetted by the recent tech surge, the report says, which is also a key factor for growth in New York and Boston. In San Jose, payrolls stand at an all-time high due to 15.3 percent year-over-year growth. REIS data shows that more than 450,000 square feet were added in the first quarter of 2015, but robust demand has absorbed it. According to Auction.com’s 2015-2018 U.S. Office Projections, San Jose will see a 22 percent increase in rents in the next three years, as well as a decreased vacancy of 440 basis points (bps). Rent growth from July 2014 to July 2015 in San Jose was 7.2 percent, and as supply evens out, Auction.com expects …