Google+
  • Ocwen37.63-0.17 -0.45%
  • Zillow103.23+1.09 +1.07%
  • Trulia34.23-0.38 -1.10%
  • NationStar30.88+0.47 +1.55%
  • CoreLogic28.88+0.05 +0.17%
  • RE/MAX28.00+0.02 +0.07%
  • Fannie Mae3.94-0.02 -0.51%
  • Freddie Mac3.94-0.02 -0.51%
  • Wells Fargo49.445-0.145 -0.29%
  • CitiMortgage48.325-0.075 -0.15%
  • Bank of America16.36-0.01 -0.06%
  • Auction.com0.00N/A N/A
  • Fidelity National Financial31.95+0.62 +1.98%
  • Black Knight Financial0.00N/A N/A
  • AUDUSD=X0.9262N/A N/A
  • USDJPY=X102.2135N/A N/A
  • WP Stock Ticker
To show sotck chart
Home | CMBS Delinquencies Soar, Led by Hotel Defaults: Trepp
Hudson & Marshall
Print This Post Print This Post

CMBS Delinquencies Soar, Led by Hotel Defaults: Trepp

CMBS Delinquencies Soar, Led by Hotel Defaults: Trepp

The secondary market for commercial real estate is just beginning to show new life, with the first successful sale of a commercial mortgage-backed securities (CMBS) package in over a year and several new issues in the wings spurred by the strong investor interest on that initial offering. But the positives of fresh activity are tempered by more bad news on the performance of those commercial bond deals made before the freeze.[IMAGE]

According to a new report from commercial research provider “Trepp”:http://www.trepp.com, delinquent loans in commercial mortgage securities jumped 85 basis points to 5.65 percent at the end of November. That figure is up from just 4.8 percent a month earlier.
[COLUMN_BREAK] The delinquency rate was highest in the hotel sector, where defaults skyrocketed from 8.67 percent in October to 14.09 percent in November. According to Trepp, the upsurge came from a single Extended Stay Hotel loan. Without it in the mix, the hotel delinquency rate would have increased only 64 basis points, to a little over 9 percent.

Based on Trepp’s analysis, delinquencies on multifamily CMBS loans rose to 8.78 percent in November, up from 7.66 percent the previous month. All other sector’s showed slighter increases. Retail edged up from 4.53 percent to 4.78 percent. Industrial increased from 3.18 percent to 3.33 percent. Office loan delinquencies crept up from 3.08 percent to 3.14 percent.

Trepp says there were $65.2 billion in CMBS loans in special servicing at the end of November, an increase of $8.2 billion, or 14 percent, compared to October.

Hudson & Marshall

About Carrie Bay

Carrie Bay
Carrie Bay is a freelance writer for DS News and its sister publication MReport. She served as online editor for DSNews.com from 2008 through 2011. Prior to joining DS News and the Five Star organization, she managed public relations, marketing, and media relations initiatives for several B2B companies in the financial services, technology, and telecommunications industries. She also wrote for retail and nonprofit organizations upon graduating from Texas A&M University with degrees in journalism and English.

Leave a Reply

Scroll To Top