CMBS saw a modest reprieve from the recent surging delinquencies in August as an improvement in the hotel market helped pull the headline number lower. However, Trepp’s Manus Clancy warns that “it may be too early to start popping corks”. According to Trepp, delinquencies finished at 4.25%, down 16 basis points from July – marking only the second decline over six months for CMBS loans.
Four of five major commercial real estate property types experienced an increase in their respective delinquency rates during August; office rising 11 bps and surpassing 5%. Clancy further notes that “the improvement in hotel delinquency rate was driven by one large loan seeing its status change modestly” and encourages readers to carefully analyze all nuances within this month’s data set before making any conclusions or decisions based on it.
