CMBS delinquencies saw a modest reprieve in August, as an improvement in the hotel market helped pull the headline number lower. However, according to Trepp’s Manus Clancy, “it may be too early to start popping corks”. Trepp reported that delinquencies finished at 4.25%, down 16 basis points from July – representing the second decline in six months.
Four of five major commercial real estate property types experienced an increase in their respective delinquency rates for August; office rising 11 bps and cracking 5%. Clancy further noted that this month’s data has many nuances and encourages readers to parse it carefully – with much of the improvement being attributed to one large hotel loan seeing its status change slightly.
It remains unclear whether or not CMBS will continue on its downward trajectory; however, caution is advised when interpreting these figures until more conclusive evidence can be seen over time.
