NEW YORK, Jan. 6, 2014 /PRNewswire/ — Trepp, LLC, the leading provider of information, analytics and technology to the CMBS, commercial real estate, and banking markets, released its December 2013 US CMBS Delinquency Report today (available at http://www.trepp.com/knowledge/research).
(Photo: http://photos.prnewswire.com/prnh/20140106/PH40894-a)
(Photo: http://photos.prnewswire.com/prnh/20140106/PH40894-b)
The Trepp CMBS delinquency rate continued to drop in December, which marked the seventh consecutive month of improvement. With a rate decrease of 23 basis points over the course of the month, the delinquency rate for US commercial real estate loans in CMBS is now 7.43%. The rate is 228 basis points better than the 2012 year-end delinquency rate.
"Investors had a lot to worry about in 2013," said Manus Clancy, Senior Managing Director at Trepp. "Concerns included rising interest rates, the tapering of QE3, Cyprus, Syria, government shutdowns, and the debt ceiling. Despite all the potential speed bumps, CMBS new issuance was terrific, CMBS delinquency rates continued to plunge, and commercial real estate values remained firm. The results should give investors a lot of confidence going into 2014."
Contributing to the improvement in delinquencies in December was about $1.3 billion in previously delinquent loans that were resolved with losses. Loans that cured totaled about $1.6 billion, which put downward pressure on the rate, but $1.6 billion in new delinquencies negated that improvement.
The majority of the $3 billion of distressed assets and additional note sales by special servicer CWCapital did not resolve in time for the December payment cycle. As a result, we should see significant decreases in the rate in early 2014.
For additional details, such as historical delinquency rates, delinquency status, and delinquency rates by major property type, request the December 2013 US CMBS Delinquency Report at http://www.trepp.com/knowledge/research. For daily CMBS commentary and credit events, register for TreppWire or 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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