TREPP November 2014 – US CMBS Delinquency Report: Delinquency Rate Breaks 6%, Reaches Lowest Rate in Five Years










To change what you get you must change who you are.

Vernon Howard


The Trepp CMBS Delinquency Rate surprised market watchers in October with an 11-basis-point increase, the largest monthly gain in over two years. Given the aggressive rate at which special servicers have been resolving loans, Trepp anticipated gains would level-off going into 2015. However, the Trepp CMBS Delinquency Rate reversed course in November and posted its biggest drop in 10 months, falling 34 basis points. In the process, the delinquency rate fell below 6% and hit its lowest level in five years.

The delinquency rate for US commercial real estate loans in CMBS is now 5.80%. November’s rate is 186

basis points lower than the year-ago level. Year-to-date, delinquencies have fallen 163 basis points from 7.43% in December of 2013. delinquency rate calculation by about $7 billion, after taking into consideration the removal of paid off and resolved loans. We are now approaching the dreaded 2015-2017 “wall of maturities,” during which the 10-year CMBS loans originated during the ‘go-go’ years of 2005-2007 are slated to balloon. Below are the delinquency rates for those vintages as we approach their maturity dates.






TREPP November 2014 – US CMBS Delinquency Report – Delinquency Rate Breaks 6% Reaches Lowest Rate in Five Years