CRED IQ releases latest delinquency rate data
The overall delinquency rate for commercial mortgage-backed securities (CMBS) fell for the 22nd month in a row, with all major property types showing improvements.
The CMBS delinquency rate declined from 4.02% in March to 3.84% in April, according to a new report from commercial real estate data and analytics company CRED IQ.
By property types, lodging saw the most improvement in individual delinquency rates, down by 46% annually to 7.99% in April. In addition, the outstanding balance of delinquent lodging loans was down by more than $450 million compared to the previous month. Meanwhile, office delinquency rates showed slight improvement, down to 1.88% in April compared to 1.89% in February.
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CRED IQ’s special servicing rate, which includes delinquent and non-delinquent loans, posted a 34-basis point month-over-month decline.
“A combination of workouts, liquidations, cures, and mortgage rehabilitations resulted in the decline of the special servicing rate for the fourth consecutive month,” the firm said in a statement. “That said, the $80 million Chicago Ridge Mall was among the largest loans to transfer to the special servicer this month. The loan has a near-term maturity date in July 2022, and a timely payoff appears to be unlikely.”
Overall, the distressed rate of CMBS loans that are specially serviced, delinquent, or a combination of both was 6.19% - down from 6.40% in March. Distressed rates also declined across all property types, according to CRED IQ.
