The percentage of delinquent commercial mortgage-backed securities increased in September to the highest rate ever recorded by CMBS data analytics firm Trepp
, up 13 basis points to 9.05%. However, this is the smallest month-over-month increase recorded in 2010, and Trepp analysts expect the rate to dip much further in next month's statistics.
September was the first month the CMBS delinquency rate pushed over 9%. The rate was 8.92% in August and 4.36% one year ago. The percentage of seriously delinquent loans — 60-plus days delinquent or in foreclosure — jumped 16 basis points to 8.31%.
The lodging sector had the highest rate of delinquencies in September at 19.33%, followed by multifamily properties (14.43%), retail (7.13%), office (6.62%) and industrial (6.48%).
Analysts at Trepp say they expect the CMBS delinquency rate to drop because the $3.9 billion deal to purchase the Extended Stay Hotels
closed this week. The portfolio was purchased by The Blackstone Group
in conjunction with Centerbridge
. The Extended Stay Hotels portfolio accounted for 0.5% of all the CMBS loan Trepp includes in its data universe.
"Accordingly, delinquencies for October could show a dip of about 35 basis points overall," the firm said in commentary. Trepp said the majority of change would manifest in the hotel sector, which could show a drop of 500 basis points.
Write to Christine Ricciardi