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Overall US CMBS Delinquency Rate Ends 2019 on a Flat Note

The Trepp CMBS Delinquency Rate remained unchanged in December, ending a five-month stretch of reductions in the delinquency rate.

NEW YORK, Jan. 7, 2020 /PRNewswire-PRWeb/ -- Trepp, LLC, a leading provider of information, analytics, and technology to the structured finance, commercial real estate, and banking markets, has released its October 2019 US CMBS Delinquency Report. The full report can be accessed here: https://www.trepp.com/december-2019-cmbs-delinquency-report

The Trepp CMBS Delinquency Rate remained unchanged in December, ending a five-month stretch of reductions in the delinquency rate. The December reading is 2.34%, the same we recorded in November for which the rate was a post-financial-crisis low.

The delinquency rate is down 77 basis points year over year. The rate started to fall after June 2017 when CMBS delinquencies totaled 5.75%. Since then, the rate has fallen in 25 of the last 30 months. The all-time high of 10.34% was registered in July 2012. The delinquency rate began the decade at 5.87% (recorded in December 2009).

"After a year of global economic worries including talks of a possible U.S. recession, the progression (or lack thereof) surrounding trade issues, and a surge in overall market tension, CMBS held its ground," said Trepp Senior Managing Director, Manus Clancy. "December data revealed that the CMBS market was steady with lending and issuance continuing at a modest rate despite the busy holiday season."

The largest rate drop among major property sectors in December belonged to the industrial sector, with its delinquency reading dropping 55 basis points to 1.45%. The other property types only saw small changes. The overall CMBS 2.0+ delinquency rate moved up three basis points in December to 0.97%, up 35 basis points year over year. The percentage of CMBS 2.0+ loans in serious delinquency is now 0.92%, which is up four basis points from November. The CMBS 1.0 delinquency rate jumped 111 basis points to 42.78% in December.

In terms of delinquency rates for the 2010-2019 decade, the overall property type analysis (CMBS 1.0 and CMBS 2.0+) reveals that the lodging sector saw the largest drop. The lodging delinquency rate plunged 1233 basis points in this 10-year period. Multifamily followed, with its delinquency rate dropping 728 basis points throughout this time frame.

For additional details, such as historical comparisons and analysis on all major property types download the December 2019 US CMBS Delinquency Report: https://www.trepp.com/december-2019-cmbs-delinquency-report. For daily CMBS and CRE commentary, follow @TreppWire on Twitter.

About Trepp
Trepp, founded in 1979, is the leading provider of information, analytics, and technology to the CMBS, commercial real estate and banking markets. Trepp provides primary and secondary market participants with the web-based tools and insight they need to increase their operational efficiencies, information transparency, and investment performance. From its offices in New York, San Francisco, and London, Trepp serves its clients with products and services to support trading, research, risk management, surveillance, and portfolio management. Trepp is wholly-owned by Daily Mail and General Trust (DMGT). For more information, visit https://www.Trepp.com.

 

SOURCE Trepp, LLC