Trepp, LLC, a provider of information, analytics and technology to the commercial real estate and banking markets, released its August 2013 U.S. CMBS Delinquency Report today.
The delinquency rate for US commercial real estate loans in CMBS dropped for the third straight month to 8.38%. This represents a 10-basis-point drop since July's reading and a 175-basis-point improvement from a year ago. The August 2013 level is the lowest Trepp delinquency rate in three years.
There were about $2.5 billion in new delinquencies in August, which was slightly higher than the $2.4 billion July total. Helping to offset these newly delinquent loans were $1.5 billion of loans that cured. Loan resolutions, although down nearly 50 percent from July, totaled just over $1 billion, while under half a billion dollars in formerly delinquent loans were paid off in August without a loss. Both categories of loans put further downward pressure on the delinquency rate.
"August saw a continuation of the year-long downward trend in the Trepp CMBS delinquency rate, which reached an all-time high of 10.34% just over 12 months ago," said Manus Clancy, Senior Managing Director at Trepp. "We anticipate this trend will carry forward in the months ahead as a new wave of expected deals will put additional downward pressure on the numbers."
There are currently $45.5 billion in delinquent U.S. CMBS loans, excluding loans that are past their balloon date but current on their interest payments. About 2,900 are currently with the special servicer.
Among the major property types, retail remains the best performer, while industrial remains the worst, despite substantial improvement in August. The lodging delinquency rate saw the best month to month improvement, while CMBS office loans saw a small increase in the delinquency rate.
For additional details, such as historical delinquency rates and August delinquency status, request the August 2013 U.S. CMBS Delinquency Report at http://www.trepp.com/knowledge/research. For daily CMBS and bank trading ideas, credit events and commentary, register for TreppWire or follow Trepp on Twitter.
About Trepp, LLC
Trepp, LLC is the leading provider of information, analytics and technology to the CMBS, commercial real estate and banking markets. Trepp provides primary and secondary market participants with the tools and insight they need to increase their operational efficiencies, information transparency and investment performance. For more information visit www.trepp.com.
Related Stories
Multifamily Housing | Feb 18, 2015
Make It Right unveils six designs for affordable housing complex
BNIM is among the six firms involved in the project.
Office Buildings | Feb 18, 2015
Commercial real estate developers optimistic, but concerned about taxes, jobs outlook
The outlook for the commercial real estate industry remains strong despite growing concerns over sluggish job creation and higher taxes, according to a new survey of commercial real estate professionals by NAIOP.
Museums | Feb 18, 2015
Foster + Partners' National Museum of Marine Science and Technology breaks ground in Taiwan
The museum will be home to an aquarium, exhibition space, and waterfront views.
University Buildings | Feb 18, 2015
Preparing for the worst: Campus security since Virginia Tech
Seven years after the mass shootings at Virginia Tech, colleges and universities continue to shake up their emergency communications and response capabilities to shootings and other criminal threats.
Office Buildings | Feb 18, 2015
Why the mobile workplace isn't always mobile
Perkins+Will’s Janice Barnes addresses the nuance in mobility types and explains the importance of defining terms upfront.
University Buildings | Feb 17, 2015
BD+C exclusive: How security is influencing campus design and construction
Campus crime—whether real or perceived—presents Building Teams with more opportunities for early-stage consultation with university clients.
Architects | Feb 17, 2015
Architecture billings dip in January, severe weather likely to blame
“This easing in demand for design services is a bit of a surprise given the overall strength of the market over the past nine months,” said AIA Chief Economist Kermit Baker.
Multifamily Housing | Feb 17, 2015
California launches pilot program to finance multifamily retrofits for energy efficiency
The Obama Administration and the state of California are teaming with the Chicago-based MacArthur Foundation on a pilot program whose goal is to unlock Property-Assessed Clean Energy financing for multifamily housing.
Sponsored | Building Team | Feb 17, 2015
Why diversity matters
Companies in the top quartile for gender or racial and ethnic diversity are more likely to have financial returns above their national industry medians.
Multifamily Housing | Feb 17, 2015
Young Millennials likely to return home
Ninety percent of individuals born between 1980 and 1984 and who hold a Bachelor’s degree left home before they were 27 years hold. However, half of this group later returned to their parents’ home, according to a study by the National Longitudinal Study of Youth.
