Trepp reported that delinquency rate for multifamily commercial mortgage-backed securities (CMBS) loans rose sharply in November, more than reversing last month’s decline. The overall CMBS delinquency rate also rose, climbing another 42 basis points in the month.
Overall CBMS delinquency rate moves higher
For delinquencies, Trepp focuses on loans that are 30 or more days delinquent. The current CMBS delinquency report provides data through November. While it only looks at CMBS loans, it breaks out results by the type of property covered by the loans.
The delinquency rate for loans on multifamily property was 4.18 percent, up 94 basis points from last month’s reading. One year ago, the delinquency rate for CMBS loans for multifamily property was 2.46 percent.
Trepp found that the overall delinquency rate of CMBS loans in November was 6.40 percent. This is up from last month’s level of 5.98 percent. It is also up from its level of 4.58 percent one year ago.
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 8.01 percent from the level 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 loans again lead the increases
The other property types whose CMBS loan delinquencies were examined by Trepp were industrial, lodging, office and retail.
The rise in the overall commercial property delinquency rate was driven by increases in the delinquency rates for loans on lodging and office properties in addition to the increase for multifamily loans. The delinquency rates for loans on industrial and retail property types were either unchanged or down for the month.
The delinquency rates on CMBS loans on office properties saw the largest increase in the month, matching last month’s increase of 101 basis points to reach 10.38 percent. The delinquency rate for industrial property was unchanged again this month, remaining at 0.32 percent. The delinquency rate on retail property fell 25 basis points to 6.57 percent. The delinquency rate on lodging properties rose 83 basis points to 6.92 percent.
The full Trepp delinquency report can be found here.
