Trepp reported that the rise in the delinquency rate for multifamily commercial mortgage-backed securities (CMBS) loans continued in January, although more slowly than in recent months. The overall CMBS delinquency rate declined marginally, falling 1 basis point.
Overall CBMS delinquency rate rises
For delinquencies, Trepp focuses on loans that are 30 or more days delinquent. The current CMBS delinquency report provides data through January. 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 4.62 percent, up 4 basis points from last month’s reading. The multifamily CMBS delinquency rate has surged 138 basis points since October and 329 basis points since April, so this month’s increase is well below the recent average monthly rise. One year ago, the delinquency rate for CMBS loans for multifamily property was 1.91 percent.
Trepp found that the overall delinquency rate for CMBS loans in December was 6.56 percent. It was down for the first time since May. It is up from its level of 4.66 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 8.29 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 delinquency rate falls
The other property types whose CMBS loan delinquencies were examined by Trepp were industrial, lodging, office and retail.
The overall commercial property CMBS delinquency rate managed to fall in January despite 4 of the 5 property classes experiencing increases. Modest rises in the delinquency rates for multifamily, industrial, retail and lodging properties were offset by a significant decline in the CBMS delinquency rate for office property.
The delinquency rates on CMBS loans on industrial property saw the largest increase this month, rising 17 basis points to 0.46 percent. The delinquency rates on both lodging and retail properties rose 9 basis point to 6.23 percent and 7.52 percent respectively. The delinquency rate for office property fell 78 basis points to 10.23 percent.
The full Trepp delinquency report can be found here.
