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
| Jan 31, 2011
Cuningham Group Architecture launches Healthcare studio with Lee Brennan
International design firm Cuningham Group Architecture, P.A. (Cuningham Group) has announced the arrival of Lee Brennan, AIA, as Principal and Leader of its new Healthcare studio. Brennan comes to Cuningham Group with over 30 years of professional experience, 22 of those years in healthcare, encompassing all aspects of project delivery, from strategic planning and programming through design and construction. The firm’s new Healthcare studio will enhance Cuningham Group’s expertise in leisure and entertainment, education, mixed-use/housing and workplace environments.
| Jan 31, 2011
HDR Architecture Releases Evidence-based Design Videos
As a follow-up to its book Evidence-based Design for Healthcare Facilities, HDR Architecture, Inc. has released three video case studies that highlight evidence-based design principles in action.
| Jan 31, 2011
CISCA releases White Paper on Acoustics in Healthcare Environments
The Ceilings & Interior Systems Construction Association (CISCA) has released an extensive white paper “Acoustics in Healthcare Environments” for architects, interior designers, and other design professionals who work to improve healthcare settings for all users. This white paper serves as a comprehensive introduction to the acoustical issues commonly confronted on healthcare projects and howbest to address those.
| Jan 28, 2011
Firestone Building Products Unveils FirestoneRoof Mobile Web App
Firestone Building Products Company unveiled FirestoneRoof, a first-of-its-kind free mobile web app. The FirestoneRoof mobile web app enables customers to instantly connect with Firestone commercial roofing experts and is designed to make it easier for building owners, facility managers, roofing consultants and others charged with maintaining commercial roofing systems to get the support they need, when they need it.
| Jan 27, 2011
Perkins Eastman's report on senior housing signals a changing market
Top international design and architecture firm Perkins Eastman is pleased to announce that the Perkins Eastman Research Collaborative recently completed the “Design for Aging Review 10 Insights and Innovations: The State of Senior Housing” study for the American Institute of Architects (AIA). The results of the comprehensive study reflect the changing demands and emerging concepts that are re-shaping today’s senior living industry.
| Jan 25, 2011
Bloomberg launches NYC Urban Tech Innovation Center
To promote the development and commercialization of green building technologies in New York City, Mayor Michael R. Bloomberg has launched the NYC Urban Technology Innovation Center. This initiative will connect academic institutions conducting underlying research, companies creating the associated products, and building owners who will use those technologies.
| Jan 25, 2011
Top 10 rules of green project finance
Since the bottom fell out of the economy, finding investors and financial institutions willing to fund building projects—sustainable or otherwise—has been close to impossible. Real estate finance prognosticators, however, indicate that 2011 will be a year to buy back into the real estate market.
| Jan 25, 2011
Chicago invented the skyscraper; can it pioneer sustainable-energy strategies as well?
Chicago’s skyline has always been a source of pride. And while few new buildings are currently going up, building owners have developed a plan to capitalize on the latest advances: Smart-grid technologies that will convert the city’s iconic skyline into what backers call a “virtual green generator” by retrofitting high-rise buildings and the existing electrical grid to a new hyper-connected intelligent-communications backbone.
| Jan 25, 2011
AIA reports: Hotels, retail to lead U.S. construction recovery
U.S. nonresidential construction activity will decline this year but recover in 2012, led by hotel and retail sectors, according to a twice-yearly forecast by the American Institute of Architects. Overall nonresidential construction spending is expected to fall by 2% this year before rising by 5% in 2012, adjusted for inflation. The projected decline marks a deteriorating outlook compared to the prior survey in July 2010, when a 2011 recovery was expected.