Trepp – November 2013 CMBS Delinquency Report









Approve of yourself. Mark Twain



US CMBS Delinquency Rate Continues to Improve

Note: Trepp reports its monthly delinquency rates on, or close to, the first of every month. It is important to keep this in mind when reading other reports, as some outlets release their rates two to three weeks into the month.  The Trepp CMBS delinquency rate continued its impressive turnaround in November, which marked the sixth consecutive month of improvement. With a rate decrease of 32 basis points in November, the delinquency rate for US commercial real estate loans in CMBS is 7.66%. The Trepp delinquency rate has dropped 268 basis points since reaching an all-time high of 10.34% in the summer of 2012. As we noted last month, with only one month of data remaining in 2013,

there could still be more meaningful gains for the delinquency rate before New Year’s Day. November’s rate decrease can be attributed to the following:

• Almost $1.2 billion in previously delinquent loans were resolved with losses. By removing these delinquent loans from our numerator, the rate saw 22 basis points of improvement.

• Loans that cured totaled about $2.2 billion in November, which resulted in 40 basis points of downward pressure on the delinquent loan percentage.

• New delinquencies totaled just over $2 billion in November, which compares to $1.6 billion in October. These loans pushed the rate up by 38 basis points.

• Loans that were previously delinquent but paid but paid off without a loss totaled almost $245 million in November, which resulted in a five-basis-point decrease in the delinquent loan percentage. Still to come will be the sale of more than $3 billion of distressed assets and additional note sales by special servicer CWCapital. Preliminary bids for the assets were due in mid-November, so we assume some of these will close in time to hit the December remittance cycle. Removing over $3 billion of

non-performing assets from the delinquent loan category would result in a 50-basis-point decrease in the rate, so a delinquency rate that threatens the 7% level may not be out of the question.  Regardless of whether these sales hit in December

or January, the CMBS delinquency rate should continue to improve in the near-term.


The Numbers:

• The overall US CMBS delinquency rate decreased 32 basis points to 7.66%.

• The percentage of loans 30+ days delinquent or in foreclosure:

Nov ‘13: 7.66% Oct ’13: 7.98% Sept ‘13: 8.14%

• The percentage of loans seriously delinquent (60+ days delinquent, in foreclosure, REO, or non-performing balloons) is now 7.30%, down 39 basis points for the month.

• If defeased loans were taken out of the equation, the overall 30-day delinquency rate would be 7.92%—down 36 basis points from October.

• There are currently $41.3 billion in delinquent loans. (This number excludes loans that are past their balloon date but are current on their interest payments.)

• There are $49.6 billion in loans with the special servicer. This represents just over 2,800 loans.


READ MORE with graphs:

Trepp November 2013 CMBS Delinquency Report



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Walter Unger CCIM, CCSS, CCLS

I am a successful Commercial Investment Real Estate Broker in Arizona now for 15 years and I worked with banks and their commercial REO properties for 3 years. I am also a commercial landspecialist in Phoenix and a Landspecialist in Arizona.





we are at on the a rise of the cycle in Commercial Real Estate.  so there is only one way and it’s called we are going up and now is the time for you to expand, upgrade or invest in Commercial Properties in Phoenix.  The prices on deals I may get you will not be around forever.



  We barely could give land away the last few years, but times are changing.  Even in those meager years, I sold more land across the state than most other brokers. Before the real estate crash I was a land specialist in Arizona with millions of dollars of transactions, but then I had to change and also sell other commercial investment properties, which was fun, but I am a Commercial Landspecialist in Arizonal, a Commercial Land Specialist in Phoenix and love to sell land, one acre to thousands of acres.


If you have any questions about Commercial Investment Properties in Phoenix or Commercial Investment Properties in Arizona,  I will gladly sit down with you and share my expertise and my professional opinion in Commercial Properties in Phoenix or Commercial Properties in Arizona with you.Obviously I am also in this to make money, but it could be a win-win situation for all of us. 


Please reply by e-mail or call me 520-975-5207 (cell)  602-778-5110 (office direct).




Thank You



Walter Unger CCIM

Associate Broker

Kasten Long Commercial

2821 E. Camelback Road, Suite 600

Phoenix, AZ 85016

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