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
Higher Education | Aug 22, 2023
How boldly uniting divergent disciplines boosts students’ career viability
CannonDesign's Charles Smith and Patricia Bou argue that spaces designed for interdisciplinary learning will help fuel a strong, resilient generation of students in an ever-changing economy.
Apartments | Aug 22, 2023
Key takeaways from RCLCO's 2023 apartment renter preferences study
Gregg Logan, Managing Director of real estate consulting firm RCLCO, reveals the highlights of RCLCO's new research study, “2023 Rental Consumer Preferences Report.” Logan speaks with BD+C's Robert Cassidy.
Shopping Centers | Aug 22, 2023
The mall of the future
There are three critical aspects of mall design that, through evolution, have proven to be instrumental in the staying power of a retail destination: parking, planning, and customer experience. This are crucial to the mall of the future.
Affordable Housing | Aug 21, 2023
Essential housing: What’s in a name?
For many in our communities, rising rents and increased demand for housing means they are only one paycheck away from being unhoused. It’s time to stop thinking of affordable housing as a handout and start calling it what it is: Essential Housing.
Healthcare Facilities | Aug 21, 2023
Sutter Health’s new surgical care center finishes three months early, $3 million under budget
Sutter Health’s Samaritan Court Ambulatory Care and Surgery Center (Samaritan Court), a three-story, 69,000 sf medical office building, was recently completed three months early and $3 million under budget, according to general contractor Skanska.
Healthcare Facilities | Aug 18, 2023
Psychiatric hospital to feature biophilic elements, aim for net-zero energy
A new 521,000 sf, 350-bed behavioral health hospital in Lakewood, Wash., a Tacoma suburb, will serve forensic patients who enter care through the criminal court system, freeing other areas of campus to serve civil patients. The facility at Western State Hospital, to be designed by HOK, will promote a holistic approach to rehabilitation as part of the state’s vision for transforming behavioral health.
Vertical Transportation | Aug 17, 2023
Latest version of elevator safety code has more than 100 changes
A new version of ASME A17.1/CSA B44, a safety code for elevators, escalators, and related equipment developed by the American Society of Mechanical Engineers, will be released next month.
Adaptive Reuse | Aug 16, 2023
One of New York’s largest office-to-residential conversions kicks off soon
One of New York City’s largest office-to-residential conversions will soon be underway in lower Manhattan. 55 Broad Street, which served as the headquarters for Goldman Sachs from 1967 until 1983, will be reborn as a residence with 571 market rate apartments. The 30-story building will offer a wealth of amenities including a private club, wellness and fitness activities.
Sustainability | Aug 15, 2023
Carbon management platform offers free carbon emissions assessment for NYC buildings
nZero, developer of a real-time carbon accounting and management platform, is offering free carbon emissions assessments for buildings in New York City. The offer is intended to help building owners prepare for the city’s upcoming Local Law 97 reporting requirements and compliance. This law will soon assess monetary fines for buildings with emissions that are in non-compliance.
Office Buildings | Aug 15, 2023
Amount of office space in U.S. is declining for the first time, says JLL
In what is likely a historic first, the amount of office space in the U.S. is forecast to decline in 2023, according to Jones Lang LaSalle. This would be the first net decline according to data going back to 2000, JLL says, and it’s likely the first decline ever.
