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
| Dec 29, 2014
Clayco lends operational support and financing to construction services startups [BD+C's 2014 Great Solutions Report]
Design-build firm Clayco has launched an investment arm called Treehouse Adventures to provide financing and operational infrastructure to startups, including those serving the AEC industry. The new venture was named a 2014 Great Solution by the editors of Building Design+Construction.
| Dec 29, 2014
Reef Worlds to build world’s largest underwater theme park for luxury resort [BD+C's 2014 Great Solutions Report]
Dubai is known for its gargantuan commercial building projects. The latest to be proposed is the world’s largest underwater theme park, designed and built by Reef Worlds. The project was named a 2014 Great Solution by the editors of Building Design+Construction.
| Dec 29, 2014
New data-gathering tool for retail designers [BD+C's 2014 Great Solutions Report]
Beacon technology personalizes smartphone messaging, creating a new information resource for store designers. It was named a 2014 Great Solution by the editors of Building Design+Construction.
| Dec 29, 2014
Leo A Daly's minimally invasive approach to remote field site design [BD+C's 2014 Great Solutions Report]
For the past six years, Leo A Daly has been designing sites for remote field stations with near-zero ecological disturbance. The firm's environmentally delicate work was named a 2014 Great Solution by the editors of Building Design+Construction.
| Dec 29, 2014
Wearable job site management system allows contractors to handle deficiencies with subtle hand and finger gestures [BD+C's 2014 Great Solutions Report]
Technology combines a smartglass visual device with a motion-sensing armband to simplify field management work. The innovation was named a 2014 Great Solution by the editors of Building Design+Construction.
| Dec 29, 2014
From Ag waste to organic brick: Corn stalks reused to make construction materials [BD+C's 2014 Great Solutions Report]
Ecovative Design applies its cradle-to-cradle process to produce 10,000 organic bricks used to build a three-tower structure in Long Island City, N.Y. The demonstration project was named a 2014 Great Solution by the editors of Building Design+Construction.
| Dec 29, 2014
14 great solutions for the commercial construction market
Ideas are cheap. Solutions are what count. The latest installment in BD+C's Great Solutions series presents 14 ways AEC professionals, entrepreneurs, and other clever folk have overcome what seemed to be insoluble problems—from how to make bricks out of agricultural waste, to a new way to keep hospitals running clean during construction.
| Dec 29, 2014
HealthSpot station merges personalized healthcare with videoconferencing [BD+C's 2014 Great Solutions Report]
The HealthSpot station is an 8x5-foot, ADA-compliant mobile kiosk that lets patients access a network of board-certified physicians through interactive videoconferencing and medical devices. It was named a 2014 Great Solution by the editors of Building Design+Construction.
| Dec 28, 2014
Robots, drones, and printed buildings: The promise of automated construction
Building Teams across the globe are employing advanced robotics to simplify what is inherently a complex, messy process—construction.
BIM and Information Technology | Dec 28, 2014
The Big Data revolution: How data-driven design is transforming project planning
There are literally hundreds of applications for deep analytics in planning and design projects, not to mention the many benefits for construction teams, building owners, and facility managers. We profile some early successful applications.
