There was a modest drop in the rate of commercial real estate loan delinquencies in August but the overall rate is still higher than a year ago
There was a modest drop in the rate of commercial real estate loan delinquencies in August but the overall rate is still higher than a year ago.
Data from real estate research firm Trepp shows a delinquency rate of 5.4% last month, down 5 basis points from July.
The rate began climbing from a multi-year low of 4.15% in February 2016 as maturing loans were not paid off by refinancing and between March 2016 and June 2017 the rate increased 13 times.
August’s rate, while lower than the previous month, is 76 basis points above that of a year earlier and 21 basis points above the year to date Trepp reports.
There were $1.1 billion new delinquent loans in August with $400 million cured and $1 billion of previously delinquent loans resolved with a loss or at par.
The office sector saw a rise in delinquencies (up 7 basis points to 7.31%) while industrial was down (41 basis points to 6.55%) along with hotels (down 19 basis points to 3.49%) and retail (down 2 basis points to 6.61%). Multi-family was unchanged (2.91%) with apartments the best performing.
Data from real estate research firm Trepp shows a delinquency rate of 5.4% last month, down 5 basis points from July.
The rate began climbing from a multi-year low of 4.15% in February 2016 as maturing loans were not paid off by refinancing and between March 2016 and June 2017 the rate increased 13 times.
August’s rate, while lower than the previous month, is 76 basis points above that of a year earlier and 21 basis points above the year to date Trepp reports.
There were $1.1 billion new delinquent loans in August with $400 million cured and $1 billion of previously delinquent loans resolved with a loss or at par.
The office sector saw a rise in delinquencies (up 7 basis points to 7.31%) while industrial was down (41 basis points to 6.55%) along with hotels (down 19 basis points to 3.49%) and retail (down 2 basis points to 6.61%). Multi-family was unchanged (2.91%) with apartments the best performing.
