The delinquency rate1 among KBRA-rated U.S. private label commercial mortgage-backed securities (CMBS) decreased to 7.7% in December from 7.8% in November, while the distress rate (the total delinquent plus current-but-specially-serviced loan rate) ticked up to 10.6% from 10.5%. The lodging sector registered the largest increase in delinquency this month at 37 basis points (bps), but its distress rate declined the most as well this month (33 bps). Industrial, after a period of strong performance history, logged the second-highest increase in delinquency and distress rates for the month.
In December, CMBS loans totaling $1.3 billion were newly added to the distress rate, of which 40.1% ($524.3 million) involved imminent or actual maturity default. The retail sector experienced the highest volume of newly distressed loans (26.6%, $346.9 million), followed by office (21.6%, $281.9 million) and multifamily (17.8%, $232.3 million).
In this report,…