CMBS Delinquencies Improve Overall; Lodging and Retail Sectors Still Struggling: Trepp

The Trepp CMBS delinquency rate continued to trend notably lower in October. After two huge jumps in May and June, the rate has now declined for four consecutive months.

The CMBS Delinquency Rate in October is 8.28%, a decline of 64 basis points from the September number. About 1.00% of that number represents loans in the 30 days delinquent bucket – down 40 basis points for the month.

The declines come with the same caveats we’ve noted before. Some of the loans being identified as “current” have come as a result of forbearances being granted and borrowers being authorized to use reserves to bring debt service payments up to date. Trepp estimates that more than $30 billion in loans in the private market have been granted thus far.

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