CMBS Delinquency Rate in April Posts Another Decline, Led by Retail-Backed Loans

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After a slight hiccup in March, the 30+ days CMBS delinquency rate continued to decline in April.

April, the most recent month for which data is available, showed a decline

in the all-property 30+ days CMBS delinquency rate, according to both Trepp and Fitch Ratings. Trepp reported that the overall delinquency rate registered at 2.82 percent, six basis points down from March and 154 basis points down from a year-ago period. Fitch data showed that the delinquency rate fell by five basis points since March, to 2.03 percent in April.
Sector by sector, the CMBS delinquency rate declined for lodging, multifamily and retail properties, according to Trepp research, but rose for industrial and office. The delinquency rate for retail properties dropped the most, by 28 basis points month-over-month, to 4.62 percent. The delinquency rate in the lodging sector went down by five basis points, to 1.55 percent, and the delinquency rate for multifamily properties fell two basis points, to 1.99 percent.

Meanwhile, the delinquency rate on industrial properties rose by eight basis points, to 2.10 percent, and the office sector experienced a four-basis-point increase, to 3.11 percent.

Fitch researchers saw largely similar trends, with the delinquency rate declining for retail, hotel and industrial properties, but increasing by eight basis points for the office sector and by one basis point for multifamily. The delinquency for retail properties declined the most, by 35 basis points, to 4.65 percent, compared to a two-basis point decline for hotels (to 1.63 percent) and a one-basis point drop for industrial assets (to 0.95 percent).

However, in every sector, the delinquency rate today is lower than it was in April 2018.

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