Trepp US CMBS Delinquency Rate Continues to Contract to Lowest Level in Three Years

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NEW YORK, NY – Sept. 3, 2013 - Trepp, LLC, the leading provider of information, analytics and technology to the CMBS, commercial real estate and banking markets, released its August 2013 U.S. CMBS Delinquency Report today (available at http://www.trepp.com/knowledge/research).

The delinquency rate for US commercial real estate loans in CMBS dropped for the third straight month to 8.38%. This represents a 10-basis-point drop since July’s reading and a 175-basis-point improvement from a year ago. The August 2013 level is the lowest Trepp delinquency rate in three years.

Manus Clancy

There were about $2.5 billion in new delinquencies in August, which was slightly higher than the $2.4 billion July total. Helping to offset these newly delinquent loans were $1.5 billion of loans that cured. Loan resolutions, although down nearly 50 percent from July, totaled just over $1 billion, while under half a billion dollars in formerly delinquent loans were paid off in August without a loss. Both categories of loans put further downward pressure on the delinquency rate.

“August saw a continuation of the year-long downward trend in the Trepp CMBS delinquency rate, which reached an all-time high of 10.34% just over 12 months ago,” said Manus Clancy, Senior Managing Director at Trepp. “We anticipate this trend will carry forward in the months ahead as a new wave of expected deals will put additional downward pressure on the numbers.”

There are currently $45.5 billion in delinquent U.S. CMBS loans, excluding loans that are past their balloon date but current on their interest payments. About 2,900 are currently with the special servicer.

Among the major property types, retail remains the best performer, while industrial remains the worst, despite substantial improvement in August. 

The lodging delinquency rate saw the best month to month improvement, while CMBS office loans saw a small increase in the delinquency rate.

For additional details, such as historical delinquency rates and August delinquency status, request the August 2013 U.S. CMBS Delinquency Report via return email. High resolution charts available by request.

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For a complete copy of the company’s news release, please contact:

Great Ink Communications
Eric Gerard or Lindsay Church
eric@greatink.com / lindsay@greatink.com
212-741-2977

 www.trepp.com