Real Estate: Trepp Says Delinquency Rate Increased in May

June 8, 2020 | News, Real Estate
https://dailyalts.com/wp-content/uploads/2020/06/57e0dd424d51ab14f1dc8460962933771d36dced4e50744074297fd79e4dc2_640.jpg

Trepp, a leading data provider and analytics firm serving the commercial real estate industry, issued a report on the state of the commercial real estate mortgage security (CMBS) markets this week. The firm reported that The Trepp CMBS Delinquency Rate in May logged its largest increase since we started tracking this metric in 2009. The May reading is 7.15%, an increase of 481 basis points over the April number. The CMBS Special Servicing Rate also witnessed a considerable increase of 168 basis points, coming in at 6.07% in May.

Trepp Talks May Delinquency

In terms of the proportion of loans that missed payments in May but remained less than 30 days delinquent, the number came in at 7.6% by balance. Trepp said that they expect to see this number increase again in June.

The delinquencies are not spread among the sectors of the commercial real estate markets. The report found that the lodging CMBS sector was hurt the worst by the pandemic. This sector saw the largest increase in both the delinquency and special servicing rates among all property types last month. The lodging delinquency rate came in at 19.13% while the special servicing rate was recorded at 16.21%.

The retail sector was also hit hard in May. After slowing inching up every month, the retail delinquency rate rose by an enormous 647 basis points last month to 10.14%.

Other sectors of the commercial real estate markets showed very little change to pre-pandemic delinquency rates. The delinquency rate on loans to multifamily properties rose 133 bps, to 3.25%, while the delinquency rate on loans secured by office or industrial properties rose less than 50 bps.

Trepp also noted that in a positive sign for the CMBS markets the new issuance CMBS market is making a comeback. Five deals priced last month, more than the four new deals priced in February but lower than the nine new deals priced in January.

 

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2022/12/defense-attorney-g17da42d37_640.jpg
Digital Assets: Mike Novogratz Hits Out At Sam Bankman-Fried, Calls For His Prosecution
December 2, 2022     Digital Assets, News

Mike Novogratz, the billionaire CEO of Galaxy Digital (TSE: GLXY), was unequivocally critical about Sam Bankman-Fried’s virtual New York Times (NYT) Dealbook Summit interview. “I’m hoping that the authorities get…

https://dailyalts.com/wp-content/uploads/2022/12/Home_Hero.png
FinTech: Monzo To Turn Profitable In 2023, Says CEO
December 2, 2022     FinTech, News

“We will be profitable in the next financial year,” TS Anil said at the summit on Thursday, though Monzo reported pre-tax losses of £119mn for the 12 months to the…

https://dailyalts.com/wp-content/uploads/2022/12/binary-geafeafdd2_640.jpg
Artificial Intelligence: OpenAI Launches ChatGPT, A New Conversational AI System
December 2, 2022     Artificial Intelligence, News

OpenAI has unveiled ChatGPT, a new AI system that interacts in a conversational way. As part of a dialogue format, ChatGPT answers followup questions, admits its mistakes, challenges incorrect premises,…

https://dailyalts.com/wp-content/uploads/2022/12/MKV-product-hero.jpg
Artificial Intelligence: Monarch’s Electric, Driver-Optional, Smart Tractor Now In Commercial Production

Monarch Tractor has rolled out the first production model of the MK-V tractor that combines electrification, automation, and data analysis to help farmers reduce their carbon footprint, improve field safety,…