WRE News November 1, 2023
Buyer
The commercial mortgage-backed securities (CMBS) delinquency rate rose 24 basis points in October to 4.63%, according to new data from Trepp Inc. The represents the highest level since the end of the Covid-19 pandemic.
Trepp primarily attributed this spike to a $930 million industrial loan that showed up as past its balloon date and was not current on interest payments.
“The loan originated in 2021 and backs a single-borrower CMBS deal,” said the Trepp report on the delinquency rate. “The loan had a maturity date of October 2023 with embedded extension options that could push the maturity to 2026. Of the original 109 properties backing the loan, 32 have already been released.”
As a result of that single loan, the industrial delinquency rate jumped 226 basis points to 2.56%. The other commercial property sector where the delinquency rate increased were the office market, where the rate climbed 17 basis points to 5.75%, and the multifamily market, with a 79 basis points upswing to 2.64%.
Elsewhere in the industry, the lodging delinquency rate fell 51 basis points to 4.76% and the retail delinquency rate dropped 37 basis points to 6.55%.
Stay up to date on the latest real estate trends.
Seller
May 8, 2025
As you think ahead to your own move, you may have noticed some houses sell within days, while others linger.
Buyer
May 8, 2025
With all the uncertainty in the economy, the stock market has been bouncing around more than usual.
Buyer
May 6, 2025
Saving up to buy a home can feel a little intimidating, especially right now.
Seller
May 6, 2025
Thanks to recent home price appreciation, homeowners have near record amounts of equity – and you may too.
Buyer
May 6, 2025
Buyer
May 5, 2025
We Guide Homeowners through the complicated process of selling their home using our 4 Phase Selling Process and 3 Prong Marketing Strategy that alleviates their stress and moves them effortlessly to their next destination. Schedule a 15 Minute Complimentary Strategy Session Today