The delinquency rate for commercial mortgage-backed securities (CMBS) dipped by 4 basis points to 4.67% in March, according to new data from Trepp LLC.
Year over year, the overall CMBS delinquency rate is up 158 basis points from 3.09%. The percentage of loans that are seriously delinquent – 60-plus days delinquent, in foreclosure, REO, or non-performing balloons – is now 4.51%, up 10 basis points for the month.
“The decline was almost exclusively due to the continued improvement in the retail sector as it notched its fourth consecutive monthly decline,” said Stephen Buschbom, research director at Trepp. “The retail delinquency rate declined 47 basis points in March to 5.56%. Ironically, the office sector was one of only two sectors that saw a decline in the delinquency rate. The office delinquency rate declined five basis points to 6.58%.”
Among the other sectors, the industrial delinquency rate increased 4 basis points to 0.47%, the multifamily delinquency rate increased 3 basis points to 1.84% and the lodging delinquency rate remained unchanged at 5.45%.
