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
| Jun 11, 2012
Genivar and WSP Group join forces
Genivar concurrently announces a $225 million public bought deal of subscription receipts, a $197 million private placement of subscription receipts and new credit facilities.
| Jun 11, 2012
SimplexGrinnell highlights integrated suite of web-based technologies at NFPA Expo
eservices platform uses the power of the Internet to deliver more value to customers.
| Jun 11, 2012
Reed Construction announces new hire and promotion
Reed Construction hired Augie Insalaco as a project manager and promoted Matt Mahoney from project intern to project engineer.
| Jun 11, 2012
Hill International selected as CM for Porto Arabia Towers in Qatar
The complex is a mixed-use development featuring both residential and commercial properties.
| Jun 8, 2012
Living Building Challenge wins the 2012 Buckminster Fuller Challenge
The Living Building Challenge was chosen from a pool of 122 of entries from around the world.
| Jun 8, 2012
Nauset Construction completing sustainable dorm for Brooks School
Student input on green elements provides learning experience.
| Jun 8, 2012
Skyline Construction names Millitello president
Millitello is a 31-year veteran who has overseen the construction of campus-size projects.
| Jun 8, 2012
Thornton Tomasetti/Fore Solutions provides consulting for renovation at Tufts School of Dental Medicine
Project receives LEED Gold certification.
