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The delinquency rate for commercial real estate loans reached another all-time high in July, according to a report from ""Trepp"":http://www.trepp.com/.
[IMAGE]Spiking up another 18 basis points, the CMBS delinquency rate stood at 10.34 percent, up from 10.16 percent in June and 10.04 percent in May. Last year at this time, the rate was 9.88 percent.
July's increase is the fifth monthly rise and means the delinquency level is up 97 basis points since February.
[COLUMN_BREAK]The analytics company said the continued increase is due to a wave of five-year loans that could not refinance. Since most of the 2007 loans matured in the first half of 2012, Trepp predicts the rate should plateau in coming months, despite the jump in the delinquency rate in July.
In response to Trepp's findings, David Tobin, principal at Mission Capital Advisors, said the delinquency rate remains elevated because of the market pressures all vintages of originations are experiencing.
""These include persistently high unemployment, which directly affects office and industrial demand and secular changes in how retail real estate interacts with consumers - or doesn't as the case may be,"" said Tobin.
Among the five categories of properties, the retail loan segment was the only one which saw an increase.
The retail delinquency rate dropped 14 basis points to 8.03 percent.
The multifamily delinquency rate fared the worst and was up 52 basis points to 15.69 percent. The hotel delinquency rate followed behind at 13.06 percent while the industrial delinquency rate climbed to 11.72 percent. The office delinquency rate increased to 10.69 percent.
