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The delinquency rate for commercial mortgage-backed securities (CMBS) was up for the sixth consecutive month in August, rising six basis points to 7.29%. Year-over-year, the overall CMBS delinquency rate has increased by 185 basis points from 5.44%.
According to data from Trepp Inc., last month’s the overall delinquent balance was $44.1 billion while the outstanding balance was $604.6 billion – both were up from $43.3 billion and $598.9 billion in July, respectively.
“Breaking it down by property type, there were three main sectors that experienced substantial rate movement,” said Vivek Denkanikotte, Trepp research associate. “Multifamily and office rates both surged, with the former up 71 basis points to a nine-year high of 6.86%, and the latter climbing 62 basis points to yet another all-time high of 11.66%. The retail delinquency rate dropped 48 basis points to 6.42%, receding to its lowest level in the past year.
Among the other commercial property sectors, the industrial delinquency rate was up by eight basis points in August to 0.60% while the 6.47% lodging delinquency rate was the result of a five-basis-point drop.
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