Trepp, LLC, a provider of CMBS and commercial mortgage information, analytics and technology to the global securities and investment management industry, has released its April 2011 U.S. CMBS Delinquency Report.
The U.S. CMBS delinquency rate rose again in April with the percentage of loans 30+ days delinquent, in foreclosure or REO climbing 23 basis points to 9.65 percent, the largest jump since December 2010 and the highest in history for U.S. commercial real estate loans in CMBS. The value of delinquent loans now exceeds $62.8 billion.
The jump comes despite two significant factors that are putting downward pressure on the delinquency rate: 1) the addition of new and generally current issues being added to the calculation and 2) a greater number of CMBS loans being resolved by special servicers compared to 18 months ago. Despite these factors, the rate was up sharply in April. The 23 basis point increase was above the 12-month rolling average of 18.5 basis points per month.
“With the delinquency rate showing very small increases in February and March, and CMBS lending beginning to pick up, most of us thought that the worst was behind the CMBS market,” said Manus Clancy, managing director of Trepp, in the report. “But instead, the month indicated that the ride to recovery won’t be without some bumps along the way.”
