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NEW YORK, NY -- The Trepp CMBS
delinquency rate continued its impressive turnaround in November, which marked
the sixth consecutive month of improvement. With a rate decrease of 32 basis
points in November, the delinquency rate for US commercial real estate loans in
CMBS is 7.66%.
The Trepp delinquency rate has
dropped 268 basis points since reaching an all-time high of 10.34% in the
summer of 2012.
As we noted last month, with only one month of data remaining
in 2013, there could still be more meaningful gains for the delinquency rate
before New Year’s Day.
Still to come will be the sale of more than $3 billion of
distressed assets and additional note sales by special servicer CWCapital.
Preliminary bids for
the assets were due in mid-November, so we assume some of these will close in
time to hit the December remittance cycle.
Removing over $3 billion of non-performing assets from the
delinquent loan category would result in a 50-basis-point decrease in the rate,
so a delinquency rate that threatens the 7% level may not be out of the
question.
Regardless of whether
these sales hit in December or January, the CMBS delinquency rate should
continue to improve in the near-term.
For a complete copy of the
company’s news release, please contact:
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