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
| Apr 5, 2011
Top 10 Buildings: Women in Architecture
Making selections of top buildings this week led to a surprising discovery about the representation of women in architecture, writes Tom Mallory, COO and co-founder, OpenBuildings.com. He discovered that finding female-created architecture, when excluding husband/wife teams, is extremely difficult and often the only work he came across was akin to interior design.
| Apr 5, 2011
What do Chengdu, Lagos, and Chicago have in common?
They’re all “world middleweight cities” that are likely to become regional megacities (10 million people) by 2025—along with Dongguan, Guangzhou, Hangzhou, Shenzhen, Tianjin, and Wuhan (China); Kinshasa (Democratic Republic of the Congo); Jakarta (Indonesia); Lahore (Pakistan); and Chennai (India), according to a new report from McKinsey Global Institute: “Urban World: Mapping the economic power of cities”.
| Mar 30, 2011
China's low-carbon future city
In 2005, the Chinese government announced its target to reduce energy consumption per GDP unit by 20% by the year 2010. After a multi-billion investment, that target has been reached. The Chinese Climate Protection Program’s goal to increase energy efficiency, develop renewable energies, and promote energy savings while reducing pollutant emissions and strengthening environmental protection is reflected in the “Future City” by SBA Design.
| Mar 30, 2011
Is the AEC industry at risk of losing its next generation leaders without better mentoring?
After two or three horrifying years for the AEC industry, we are finally seeing the makings of a turnaround. However, data developed by Kermit Baker as part of the AIA Work-on-the-Boards survey program indicates that between 17% and 22% of design firms are eliminating positions for interns and staff with less than six years of experience. This data suggests the industry is at risk of losing a large segment of its next generation of leaders if something isn't done to improve mentoring across the profession.
| Mar 29, 2011
City's design, transit system can ease gas costs
Some cities in the U.S. are better positioned to deal with rising gas prices than others because of their design and transit systems, according to CEOs for Cities, a Chicago-based nonprofit that works to build stronger cities. The key factor: whether residents have to drive everywhere, or have other options.
| Mar 29, 2011
Chicago’s Willis Tower to become a vertical solar farm
Chicago’s iconic Willis Tower (formerly the Sears Tower) is set to become a massive solar electric plant with the installation of a pilot solar electric glass project.
| Mar 29, 2011
Read up on Amazon.com's new green HQ
Phase IV of Amazon’s new headquarters in Seattle is nearly complete. The company has built 10 of the 11 buildings planned for its new campus in the South Lake Union neighborhood, and is on-track for a 2013 grand opening.
| Mar 29, 2011
Portuguese architect Eduardo Souto de Moura wins Pritzker Architecture Prize
Portugese architect Eduardo Souto de Moura, whose precisely-honed buildings reflect the influence of the late Chicago modernist Mies van der Rohe, is the 2011 winner of the Pritzker Architecture Prize, the field's highest honor.
| Mar 25, 2011
Qatar World Cup may feature carbon-fiber ‘clouds’
Engineers at Qatar University’s Department of Mechanical and Industrial Engineering are busy developing what they believe could act as artificial “clouds,” man-made saucer-type structures suspended over a given soccer stadium, working to shield tens of thousands of spectators from suffocating summer temperatures that regularly top 115 degrees Fahrenheit.
