2021 Multifamily CMBS Delinquency Rates

The Trepp CMBS delinquency rate declined 36 basis points to 1.9 percent.
Source: Trepp
Source: Trepp

After two huge jumps in May and June 2020, the rate has now declined for 11 consecutive months. The CMBS delinquency rate in May was 6.2 percent, a drop of 36 basis points from the April number. The percentage of loans in the 30 days delinquent bucket is 0.38 percent, down 31 basis points for the month.

In terms of loans in grace period, 2.8 percent of loans by balance missed the May payment but were less than 30 days delinquent. That was up 52 basis points for the month. The percentage of loans with the special servicer fell to 8.7 percent in May from 9.0 percent in April. The percentage of loans on servicer watchlist climbed to 26.6% in May from 25.7% in April.

The overall US CMBS delinquency rate dropped 36 basis points in May to 6.2 percent. (The all-time high on this basis was 10.3 percent registered in July 2012). The percentage of A/B loans (i.e. loans in grace period or beyond grace period) was 2.8 percent in May. Year over year, the overall US CMBS delinquency rate is down 99 basis points.

Year-to-date, the rate is down 165 basis points. The percentage of loans that are seriously delinquent (60+ days delinquent, in foreclosure, REO, or non-performing balloons) is now 5.8 percent, down eight basis points for the month. If defeased loans were taken out of the equation, the overall 30-day delinquency rate would be 6.5 percent, down 38 basis points from April. One year ago, the US CMBS delinquency rate was 7.2 percent. Six months ago, the US CMBS delinquency rate was 8.2 percent.

The multifamily delinquency rate declined 36 basis points to 1.9 percent.

Manus Clancy is Senior Managing Director of Applied Data & Research.

—Posted on Jun. 29, 2021