The Trepp CMBS delinquency rate maintained its downward trend in November, falling sharply to another post-crisis low. The November reading was 2.34%, a month-over month drop of 13 basis points (bp). The delinquency rate is down 99 bp year over year. The delinquency rate started to fall after June 2017, when CMBS delinquencies totaled 5.75%. Since then, the rate has fallen in 25 of the last 29 months. Year to date, the rate is 77 bp lower. The all-time high of 10.34% was registered in July 2012.
Lodging remains the best performing major property type, while retail remains the worst performing major property type. Lodging delinquency ticked up 3 bp to 1.52%, while retail delinquency climbed 16 bp to 4.36%. Office delinquency tumbled 53 bp to 1.97%, while industrial and multifamily delinquency rates finished at 2.00% and 2.01%, respectively.
It is important to note that the delinquency rates include pre-crash loans that are steadily being resolved. Downward pressure on delinquency rates will remain until convergence with the post-crisis delinquency rate, which is roughly 1%.