CMBS: Residual Effects of 2007 Being Felt

According to TreppWire’s most recent delinquency report, the delinquency rate for U.S. commercial real estate loans hit another all-time high in June. From a 10.04% mark in May, the rate crept up another 12 basis points to 10.16% in June. The delinquency rate is now up almost 80 basis points since February.

The report notes that the only property type to improve last month was the industrial channel. Lodging, office and retail loans all experienced higher delinquency rates. The rate for multi-family loans remained level.

Despite the recent increase, Trepp predicts that the upward pressure on delinquency rates should ease in the second half of 2012, as the number of 2007 loans reaching their maturity date will decline sharply. Most of the 5-year loans originated in 2007 were made during the first half of the year.

For more information, visit Trepp.com

2018-02-12T17:33:17+00:00State of the Market|