The delinquency rate1 among KBRA-rated U.S. private label commercial mortgage-backed securities (CMBS) in July increased to 7.5% from 7.3% in June. However, the total delinquent plus current but specially serviced loan rate (collectively, the distress rate) only increased 7 basis points (bps) to 10.6%. The conduit mixed-use delinquency rate increased 146 bps month-over-month (MoM) to 13.2%, largely due to the Columbus Square Portfolio ($293.5 million in three conduits (KBRA-rated) out of $361.2 million total), which became delinquent.
In July, CMBS loans totaling $1.4 billion were newly added to the distress rate, of which 57.7% ($790.4 million) involved imminent or actual maturity default. The office sector experienced the highest volume of newly distressed loans (35.6%, $487.4 million), followed by retail (27.2%, $372.6 million) and mixed-use (22.7%, $310.5 million).
In this report, KBRA provides observations across our $335.7 billion rated…