Optimism from Trepp analysts that commercial MBS delinquency rates might improve in the second half of 2012 did not occur in July as expected, according to new figures from the New York-based analytics firm.
For the fifth straight month, the CMBS delinquency rate increased in July, surpassing the all-time high that was recorded in June. Commercial real estate loans in CMBS that are 30 or more days delinquent or in foreclosure increased another 18 basis points in July to 10.34%.
This latest rise puts the delinquency level up 97 basis points since February.
The percentage of loans seriously delinquent—at least 60 days late, in foreclosure, REO, or nonperforming balloons—is at 9.8%, which is up 7 basis points from the previous month.
Currently, $59.5 billion in loans are delinquent. Special servicers have $75.4 billion in CMBS loans within their portfolios, which is approximately 4,000 loans.
The only major property type to improve was the retail loan segment. Lodging, office, residential and industrial loans all saw higher delinquency rates in July.
Trepp said the spike in the delinquency rate was driven by an increase in multifamily loans, which rose 52 basis points from June and remains the worst major property type with a rate of 15.69%.
Meanwhile, the office delinquency rate jumped 24 basis points to 10.69%, industrial delinquency rate increased 18 basis points to 11.72%, hotel delinquency rate rose 11 basis points and is now back above 13%, and the retail delinquency rate fell 14 basis points to 8.03%, but is still the best performing major property type.
