CMBS Delinquency and Special Servicing Rates Inch Upward

November 21, 2022. 

  • Following three consecutive monthly declines, the CMBS delinquency rate increased 4 bps in October to 2.96%.  
  • Despite falling for 25 of the last 28 months, we anticipate the delinquency rate will be more volatile given the challenging macro environment. This reflects both heightened market volatility and a growingly unfavorable landscape for lenders in refinancing loans at higher rates and likely lower asset valuations as cap rates rise and the real potential that property-level cash flows decline.
  • Loans in special servicing rose slightly in October, up 3 bps to 4.97%. While small, it marks the third consecutive increase (which followed 22 successive monthly declines). While the special servicing rate remains well below its high of 10.48% in September 2020 at the height of the pandemic, higher benchmark rates and the real risk of an economic slowdown suggest asset valuations may be on the decline, challenging loan performance.
  • This is the first time since June 2020 that the CMBS delinquency and special servicing rates rose in tandem.

Contact 

Raj Aidasani
Senior Director, Research
646.884.7566
raidasani@crefc.org

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Following three consecutive monthly declines, the CMBS delinquency rate increased 4 bps in October to 2.96%.  

The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2021 CRE Finance Council. All rights reserved.

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