Trepp Reports US CMBS Delinquency Rate Continues to Improve

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:

Eric@greatink.com