The commercial mortgage-backed securities (CMBS) delinquency rate held steady in April, increasing just 1 basis point to 4.23 percent, reported Trepp LLC, New York.
April represented the second straight month that the delinquency rate crept higher following large decreases in both January and February.
One year ago, Trepp's U.S. CMBS delinquency rate equaled 5.72 percent.
Brian Olasov, executive director with Carlton Fields, New York, said any incremental changes in delinquency ratios reflect a "shrinking denominator" of outstanding CMBS in equal measure to changes in delinquent loan balances. "New issuance has been slow enough that it's not replacing amortizations and payoffs from legacy CMBS loans," he said.
Olasov noted that he has seen a pause in new lending where lenders across most sectors have turned cautious. "In the coming months, this is bound to place additional pressure on maturing loans with limited refi opportunities," he said.
Trepp said more than $600 million in loans were cured in April, which pushed delinquencies 12 basis points lower. About $1.1 billion in loans became newly delinquent, which put 21 basis points of upward pressure on the delinquency rate.
The retail delinquency rate dipped 13 basis points and the multifamily delinquency rate fell 2 basis points to 5.20 percent and to 2.32 percent, respectively, Trepp said. Apartment loans remain the best-performing major property type.
Industrial, hotel and office delinquency...