In September, Trepp reported a rise in CMBS loan losses. A total of 15 loans were resolved with $252.5 million in losses, resulting in an average loss severity of 55.26%. This was significantly higher than the $47.2 million lost on loans in August.
The disposed balance for the past 12 months decreased to $266.3 million from last month’s figure of $277.7 million, while the average loss severity for this period increased slightly to 63.54% compared to August’s rate of 63.28%.
According to Trepp, the average loss severity for loans with losses greater than 2% also saw an increase from August at a rate of58 .75%. The running average over the past year for these typesof loans was recorded at65 .97%, which is only slightly higher than last month’s movingaverageof65 .97 %.
