Trepp reported that the delinquency rate for multifamily commercial mortgage-backed securities (CMBS) loans surged higher again in April on a few large loans becoming delinquent. The overall CMBS delinquency rate also rose, gaining 38 basis points.
Overall CBMS delinquency rate exceeds 7 percent
For delinquencies, Trepp focuses on loans that are 30 or more days delinquent. The current CMBS delinquency report provides data through April. 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 6.57 percent, up 113 basis points from last month’s reading. This is by far the biggest increase of any of the property types Trepp tracks. One year ago, the delinquency rate for CMBS loans for multifamily property was at its recent low of 1.33 percent. It has been rising steadily since then. However, the multifamily delinquency rate is still below the level it reached in March 2015, when it was at 8.28 percent.
Trepp found that the overall CMBS delinquency rate in April was 7.03 percent. The overall CMBS delinquency rate is up from its level of 5.07 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 8.37 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.
Lodging and office rates also move higher
The other property types whose CMBS delinquencies were examined by Trepp were industrial, lodging, office and retail.
The CBMS delinquency rates for lodging and office properties each moved higher by more than 50 basis points this month. The rate for lodging properties rose 66 basis points to 7.85 percent. It is up 142 basis points in just the last two months. The rate for office properties rose 52 basis points to 10.28 percent. It had been below the 10 percent level for the prior two months.
The delinquency rates on CMBS loans on retail and industrial property both fell for the month. The rate on retail property loans dropped 70 basis points to 7.12 percent. This is the lowest it has been since last November. The rate for industrial property fell 10 basis points to 0.50 percent.
The full Trepp delinquency report can be found here.
