Loans packed into commercial mortgage-backed securities performed better in August with the U.S. CMBS delinquency rate dropping 21 basis points to 10.13%, Trepp Analytics said Tuesday.

The analytics firm found the total number of CMBS delinquencies experiencing the largest one-month drop since November of last year.

With riskier 2007 securitized commercial loans already passed their maturity dates and $1.5 billion in CMBS loans resolved in August, the delinquency rate experienced a natural and significant drop, Trepp reported.

Removing delinquent loans from the pile put 26-basis points of downward pressure on the overall delinquency rate.

Loan types performing well included apartments, lodging and offices—all of which saw improved delinquency rates. Retail and industrial loans are still lagging behind with their delinquency rates edging higher in August.

Still, Trepp is keeping an eye on loans with balloon payments. In some cases, these loans are passed their balloon date and current on interest payments (performing balloons). But they create risk having failed to make a scheduled balloon payment.

"This category now accounts for 1.13% of loans in the database, down 16 basis points in August," Trepp wrote. "If we were to consider these loans late, the delinquency rate would have been 11.26%. On this basis, the delinquency rate for August was down 37 basis points from the July rate with performing balloons included."

kpanchuk@housingwire.com