Delinquency rate for commercial real estate loans at lowest level in three years

Trepp, LLC, a provider of information, analytics and technology to the commercial real estate and banking markets, released its August 2013 U.S. CMBS Delinquency Report today.

The delinquency rate for US commercial real estate loans in CMBS dropped for the third straight month to 8.38%. This represents a 10-basis-point drop since July's reading and a 175-basis-point improvement from a year ago. The August 2013 level is the lowest Trepp delinquency rate in three years.

There were about $2.5 billion in new delinquencies in August, which was slightly higher than the $2.4 billion July total. Helping to offset these newly delinquent loans were $1.5 billion of loans that cured. Loan resolutions, although down nearly 50 percent from July, totaled just over $1 billion, while under half a billion dollars in formerly delinquent loans were paid off in August without a loss. Both categories of loans put further downward pressure on the delinquency rate.

"August saw a continuation of the year-long downward trend in the Trepp CMBS delinquency rate, which reached an all-time high of 10.34% just over 12 months ago," said Manus Clancy, Senior Managing Director at Trepp. "We anticipate this trend will carry forward in the months ahead as a new wave of expected deals will put additional downward pressure on the numbers."

There are currently $45.5 billion in delinquent U.S. CMBS loans, excluding loans that are past their balloon date but current on their interest payments. About 2,900 are currently with the special servicer.

Among the major property types, retail remains the best performer, while industrial remains the worst, despite substantial improvement in August. The lodging delinquency rate saw the best month to month improvement, while CMBS office loans saw a small increase in the delinquency rate.

For additional details, such as historical delinquency rates and August delinquency status, request the August 2013 U.S. CMBS Delinquency Report at http://www.trepp.com/knowledge/research. For daily CMBS and bank trading ideas, credit events and commentary, register for TreppWire or follow Trepp on Twitter.

About Trepp, LLC
Trepp, LLC is the leading provider of information, analytics and technology to the CMBS, commercial real estate and banking markets. Trepp provides primary and secondary market participants with the tools and insight they need to increase their operational efficiencies, information transparency and investment performance. For more information visit www.trepp.com.

Peter W. Rutti, AIA, Associate Principal and Project Director of Westlake Reed Leskosky, has been appointed Director of Design of the Phoenix, Arizona studio of the nationally recognized architects, engineers, and technology designers. The announcement recognizes the design excellence, leadership, and continued growth of the national and international practice of the integrated design firm in the western region.

| Feb 14, 2013

Peter Bardwell named 2013 president of the American College of Healthcare Architects

The Board of Regents of the American College of Healthcare Architects (ACHA) has named Peter L. Bardwell, FAIA, FACHA of Columbus, Ohio as 2013 national President.

| Feb 13, 2013

Department store concept by OMA's Koolhaas, Alsaka draws inspiration from open-air Arab marketplaces

The Exhibition Hall, a retail concept planned in Kuwait City's 360° Mall, will meld cultural and commerce spaces in a series of galleries reminiscent of the long passages of the souq—traditional, open-air marketplaces found in Arab cities.