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.
Related Stories
| Feb 13, 2013
'Vegetative tower' apartments to revive NYC site
A Manhattan site formerly slated for development with a "tower of cubes"—a now-defunct project by Santiago Calatrava—will be revived with a 998-foot, 300,000-sf apartment building by Morali Architects.
| Feb 13, 2013
Fast Company selects 'most innovative' architecture firms
Business innovation magazine Fast Company has released a list of 10 "most innovative" architectural practices, worldwide.
| Feb 12, 2013
OMA's 'perimeter core' design wins competition for Essence Financial Building in Shenzhen
OMA partners David Gianotten and Rem Koolhaas rethink traditional office tower design with a plan that shifts the building's core to the edge for large, unobstructed plans.
| Feb 11, 2013
AIA elevates 122 members and seven international architects to the College of Fellows
The 2013 Jury of Fellows from the American Institute of Architects (AIA) elevated 122 AIA members to its prestigious College of Fellows, an honor awarded to members who have made significant contributions to the profession. The 2013 Fellows will be honored at an investiture ceremony at the 2013 National AIA Convention and Design Exposition in Denver.
| Feb 8, 2013
5 factors to consider when designing a shade system
Designing a shade system is more complex than picking out basic white venetian blinds. Here are five elements to consider when designing an interior shade system.
| Feb 8, 2013
Isabella Stewart Gardner Museum’s new wing voted Boston’s 'most beautiful new building'
Bostonians voted the Isabella Stewart Gardner Museum's new wing the People's Choice Award winner for 2012, honoring the project as the city's "most beautiful new building" for the calendar year. The new wing, designed by Renzo Piano and Stantec, beat out three other projects on the short list.
| Feb 6, 2013
Arcadia (Calif.) High School opens $20 million performing arts center
A 60-year old wish for the community of Arcadia has finally come true with the opening of Arcadia Unified School District’s new $20 million Performing Arts Center.
| Feb 6, 2013
CSI: Revitalizing the brand to achieve the mission
CSI is revitalizing its brand as part of its continued pursuit of its mission: improving facility performance through better communication in the commercial-level construction industry.
