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
| Feb 21, 2013
BD+C's 2008 White Paper: Green Buildings + Climate Change
In this White Paper, we provide concrete ways in which AEC professionals can have a positive role in addressing climate change.
| Feb 21, 2013
Holl videos discuss design features of Chengdu ' Porosity Block' project
Architect Steven Holl has released two short films describing the development of Sliced Porosity Block in Chengdu, China.
| Feb 21, 2013
Construction team chosen for world's tallest building in Jeddah, Saudi Arabia
Construction team chosen for world's tallest building in Jeddah, Saudi Arabia.
| Feb 21, 2013
Stephen C. Wright joins Leo A Daly as Managing Principal in D.C.
International architecture, planning, engineering, interior design and program management firm LEO A DALY welcomes Stephen C. Wright, AIA, as the new managing principal of the Washington, D.C., office. Wright will oversee the D.C. team in executing federal, local government, private and non-profit projects and pursuing new business opportunities in markets including aviation, corporate and commercial, higher education, hospitality and institutional facilities.
| Feb 20, 2013
Architecture Billings Index sees strongest growth since 2007
The American Institute of Architects reported the January ABI score was 54.2, up sharply from 51.2 in December. This score reflects a strong increase in demand for design services.
| Feb 19, 2013
'Pop-up' proposal would create movable cultural venue for NYC
The Culture Shed, a proposed 170,000-sf project for New York City's Hudson Yards development, could be the ultimate in "pop-up" facilities.
| Feb 18, 2013
Top 10 kitchen and bath design trends for 2013
Gray color schemes and transitional styles are among the top trends identified by more than 300 kitchen and bath design experts surveyed by the National Kitchen & Bath Association (NKBA).
| Feb 17, 2013
Suffolk University’s $62 million academic building gets the go-ahead
The Boston Redevelopment Authority board yesterday unanimously approved Suffolk University’s plans to move forward with a new campus building at 20 Somerset St. that will feature general-use and science classrooms, a light-filled cafeteria/function space, and indoor and outdoor lounging areas.