NEW YORK, June 30, 2014 /PRNewswire/ — Trepp, LLC, the leading provider of information, analytics, and technology to the CMBS, commercial real estate, and banking markets, released its June 2014 US CMBS Delinquency Report today (available at www.trepp.com/knowledge/research).
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Half way through 2014, CMBS issuance has disappointed and uncertainty persists in the fixed income and equity markets but one thing that has remained constant is the improving delinquency rate in CMBS. June marks the 13th straight month of improvement in the delinquency rate for US commercial real estate loans in CMBS. Dropping 22 basis points to 6.05% in June, the reading is 260 basis points lower year over year and 429 basis points below the all-time high from 2012.
"A few days ago, we saw the six year anniversary of the beginning of the CMBS Ice Age – a stretch where there would be no CMBS issuance for 21 months," said Manus Clancy, Senior Managing Director at Trepp. "As we reach the halfway point of 2014, the thaw is nearly complete. New issue spreads continue to fall and legacy defaulted CMBS loans continue to be resolved at a steady pace."
Industrial loans saw the most improvement in June, dropping 55 basis points, after being the only property type to worsen in May. Retail still holds the crown of lowest delinquency of the five major property types while multifamily remains highest.
Loan resolutions tallied $900 million in June and loans that cured offset new delinquencies. There are currently $32.4 billion in delinquent loans, which is down from $33.6 billion last month. There are $40.9 billion in loans with the special servicer representing over 2,400 loans.
For additional details, such as delinquency status and historical comparisons, request the June 2014 US CMBS Delinquency report at www.trepp.com/knowledge/research. For daily CMBS commentary, follow @TreppWire on Twitter.
About Trepp, LLC
Trepp, LLC, founded in 1979, is the leading provider of information, analytics and technology to the CMBS, commercial real estate and banking markets. Trepp provides primary and secondary market participants with the web-based tools and insight they need to increase their operational efficiencies, information transparency and investment performance. Trepp serves its clients with products and services to support trading, research, risk management, surveillance and portfolio management. Trepp is wholly-owned by DMG Information, a division of the Daily Mail and General Trust (DMGT).
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Joe McBride, Research Analyst
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