Trepp reported that delinquency rate for multifamily commercial mortgage-backed securities (CMBS) loans declined slightly in February, falling 10 basis points.
Overall CBMS delinquency rate declines
For delinquencies, Trepp focuses on loans that are 30 or more days delinquent with the current CMBS delinquency report providing data through February 2023. While it only looks at CMBS loans, it breaks out results by the type of property covered by the loans.
The delinquency rate on loans on multifamily property was 1.81 percent, down from 1.91 percent in January and 2.62 percent in December. One year ago, the delinquency rate on CMBS loans for multifamily property was 1.83 percent.
Trepp found that the overall delinquency rate of CMBS loans in January was 4.71 percent. This is up 5 basis points from last month’s rate of 4.66 percent.
The report noted that loans that are past their maturity date but are still current on their interest payments are not counted as being delinquent. However, if they were included, the overall delinquency rate on CMBS loans would rise to 4.92 percent from the 4.71 percent reported above.
The history of the overall and multifamily CMBS delinquency rates as reported by Trepp since January 2020 is illustrated in the chart, below.
Office and retail struggle
The other property types whose CMBS loan delinquencies were examined by Trepp were industrial, lodging, office and retail.
The CMBS delinquency rate for loans on industrial property rose to 0.43 percent, up slightly from 0.40 percent reported last month. Office CMBS delinquencies rose 33 basis points to 6.63 percent, again the largest rise of any of the property types tracked. Delinquencies on CMBS loans for lodging properties ticked down to 5.45 percent from January’s level of 5.46 percent. Delinquencies on CMBS loans on retail properties fell for the month, dropping to 6.03 percent from last month’s level of 6.27 percent.
The full Trepp delinquency report can be found here.
