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
Sustainability | Jan 9, 2023
Innovative solutions emerge to address New York’s new greenhouse gas law
New York City’s Local Law 97, an ambitious climate plan that includes fines for owners of large buildings that don’t significantly reduce carbon emissions, has spawned innovations to address the law’s provisions.
Fire and Life Safety | Jan 9, 2023
Why lithium-ion batteries pose fire safety concerns for buildings
Lithium-ion batteries have become the dominant technology in phones, laptops, scooters, electric bikes, electric vehicles, and large-scale battery energy storage facilities. Here’s what you need to know about the fire safety concerns they pose for building owners and occupants.
Market Data | Jan 6, 2023
Nonresidential construction spending rises in November 2022
Spending on nonresidential construction work in the U.S. was up 0.9% in November versus the previous month, and 11.8% versus the previous year, according to the U.S. Census Bureau.
Industry Research | Dec 28, 2022
Following a strong year, design and construction firms view 2023 cautiously
The economy and inflation are the biggest concerns for U.S. architecture, construction, and engineering firms in 2023, according to a recent survey of AEC professionals by the editors of Building Design+Construction.
Performing Arts Centers | Dec 23, 2022
Diller Scofidio + Renfro's renovation of Dallas theater to be ‘faithful reinterpretation’ of Frank Lloyd Wright design
Diller Scofidio + Renfro recently presented plans to restore the Kalita Humphreys Theater at the Dallas Theater Center (DTC) in Dallas. Originally designed by Frank Lloyd Wright, this theater is the only freestanding theater in Wright’s body of work.
University Buildings | Dec 22, 2022
Loyola Marymount University completes a new home for its acclaimed School of Film and Television
California’s Loyola Marymount University (LMU) has completed two new buildings for arts and media education at its Westchester campus. Designed by Skidmore, Owings & Merrill (SOM), the Howard B. Fitzpatrick Pavilion is the new home of the undergraduate School of Film and Television, which is consistently ranked among the nation’s top 10 film schools. Also designed by SOM, the open-air Drollinger Family Stage is an outdoor lecture and performance space.
Adaptive Reuse | Dec 21, 2022
University of Pittsburgh reinvents century-old Model-T building as a life sciences research facility
After opening earlier this year, The Assembly recently achieved LEED Gold certification, aligning with the school’s and community’s larger sustainability efforts.
Multifamily Housing | Dec 20, 2022
Brooks + Scarpa-designed apartment provides affordable housing to young people aging out of support facilities
In Venice, Calif., the recently completed Rose Apartments provides affordable housing to young people who age out of youth facilities and often end up living on the street. Designed by Brooks + Scarpa, the four-story, 35-unit mixed-use apartment building will house transitional aged youths.
Coatings | Dec 20, 2022
The Pier Condominiums — What's old is new again!
When word was out that the condominium association was planning to carry out a refresh of the Pier Condominiums on Fort Norfolk, Hanbury jumped at the chance to remake what had become a tired, faded project.
Cladding and Facade Systems | Dec 20, 2022
Acoustic design considerations at the building envelope
Acentech's Ben Markham identifies the primary concerns with acoustic performance at the building envelope and offers proven solutions for mitigating acoustic issues.
