The CMBS delinquency rate continued its impressive decline in March, marking the tenth consecutive month the rate has fallen, according to Trepp.
The rate dropped 24 basis points (bp) over the course of the month, bringing the delinquency rate for U.S. commercial real estate loans in CMBS to 6.54%. The Trepp delinquency rate is 228 bp lower than a year ago and 380 bp lower than the all-time high reached during the summer of 2012.
U.S. CMBS Delinquency Rate:
|Period||% 30 Days
or More Delinquent
|3 Months Ago||7.43%|
|6 Months Ago||8.14%|
|12 Months Ago||9.50%|
Driven by ongoing CWCapital distressed asset sales, the forecasted drop in delinquencies that accelerated in February extended into March with a large block of distressed asset resolutions. Over $2.1 billion in previously delinquent loans were resolved with losses over the course of the month. This level was down from $2.6 billion in February, but was still above the normal monthly average over the last two years. By removing these delinquent loans from the numerator, the rate improved 40 bp.