CMBS delinquencies up for fourth-straight month
The delinquency rate on commercial mortgage-backed securities raised 12 basis points to 10.16% in June, the fourth-straight month of increases and another all-time high, according to analytics firm Trepp.
Last year, the delinquency rate stabilized at 9.5%, but Trepp analysts warned about five-year loans securitized in 2007 that were reaching their maturity dates. The rate, analyst said at the time, "could hockey-stick upward in 2012."
And since February, it increased 79 basis points.
"The good news for the CMBS market is that most of the five-year notes originated in 2007 were made in the first six months of the year," Trepp analysts said. "Over the next six months, the number of 2007 five-year loans reaching their maturity date falls off sharply."
The delinquency rate increased for every segment except industrial properties, which declined 128 basis points to 11.54%.
Delinquencies on the multifamily sector went unchanged in June at 15.17%, the highest delinquency rate of any property type.