NEW YORK — The delinquency rate of U.S. commercial mortgage-backed securities (CMBS) fell 17 basis points in May, marking a year-long improvement. The delinquency rate for U.S. commercial real estate loans in CMBS is now 6.27 percent, 280 basis points lower than the May 2013 rate of 9.07 percent. What’s more, the delinquency rate has fallen 407 basis points since the all-time high of 10.34 percent in July 2012.
Loan resolutions totaled more than $1 billion in May, up from approximately $850 million in April. Removing distressed loans from the delinquent loan pool put 20 basis points of downward pressure on the delinquency rate. Loans that cured totaled over $800 million in May, which took 16 basis points off the delinquency loan percentage.
New delinquencies totaled about $1.3 billion in May, which pushed the rate up by 24 basis points. Loans that had been delinquent but were resolved without losses ($120 million) put another two basis points of downward pressure on the rate in May.
To put the May delinquency figures into context, the percentage of loans 30-plus days delinquent or in foreclosure was 6.44 percent in April and 6.54 percent in March.
The percentage of loans seriously delinquent (60 -plus days delinquent, in foreclosure, REO, or non-performing balloons) fell 20 basis points in May to 6.05 percent.
The volume of delinquent loans in May was $33.6 billion, down from $34.1 billion in April. This number excludes loans that are past their balloon date but are current on their interest payments. There are $40.4 billion in loans placed with the special servicer totaling approximately 2,450 loans.
Source: Trepp LLC
Analysis by Property Sector
The industrial delinquency rate was the only major property type to worsen in May. It increased 25 basis points to 8.94 percent. One year ago the industrial rate was 12.45 percent.
The lodging delinquency rate shed 61 basis points and is now 5.71 percent. Twelve months ago, the lodging rate was 9.65 percent. The 394-basis-point decline is the best year-over-year improvement among the property types.
The multifamily delinquency rate dropped one basis point to 9.82 percent. Apartment loans are still the worst performer among the major property types. One year ago, the multifamily rate was 11.61 percent.
The office delinquency rate fell 22 basis points to 6.60 percent. In May 2013, the office rate was 10.24 percent.
The retail delinquency rate kept the top spot as the best performing major property type. The delinquency rate for retail loans dipped 11 basis points to 5.54 percent. Twelve months ago, the retail rate was 7.46 percent.
— Danielle Everson