CMBS Delinquencies Pass 4%, Says Trepp

Overall delinquencies on commercial mortgage-backed securities (CMBS) surpassed 4% by the end of August, as multifamily and lodging — or hotel — sectors remain weak. The percentage of commercial loans 30 or more days delinquent rose 32bps to 4.03% at the end of August, according to Trepp‘s September CMBS performance report. Multifamily (MF) loans led overall weak performance, rising 108bps to a 6.8% delinquency rate. Lodging (LO) loans followed closely at a 6.15% delinquency rate. The retail (RT) delinquency rate more than doubled from six months ago, reaching 4.21% in August, while office (OF) loans rose to 2.27% delinquent from 0.87% six months ago. Industrial (IN) loans also more than doubled to 2.89% delinquent as of month-end. The commercial mortgage market is seeing delinquencies climb even on a loan-level basis. A handful of names continues to make waves in the space as delinquencies rise or the threat of delinquency nears. Trepp noted Lembi, Babcock & Brown, Bethany and Trilogy Apts all contributed to higher multifamily delinquencies. If the Stuy Town loan becomes delinquent, the multifamily rate could approach 10%. Write to Diana Golobay.