The delinquency rate among KBRA-rated U.S. private label commercial mortgage-backed securities (CMBS) in April increased to 7.1% from 6.8% in March. The total delinquent plus current but specially serviced loan rate (collectively, the distress rate) increased 25 basis points (bps) to 10%. Other than the industrial sector, all major property types continue to show an upward trend in their CMBS delinquency rate, ranging from 38 bps (mixed-use) to 66 bps (lodging) while industrial declined to only 0.8%.
In April, CMBS loans totaling $1.9 billion were newly added to the distress rate, of which 52.8% ($1 billion) comprised imminent or actual maturity default. The retail sector experienced the highest volume of newly distressed loans (39.7%, $762.5 million), followed by office (27.2%, $522.8 million), and mixed-use (11.9%, $227.8 million).
In this report, KBRA provides observations across our $338.7 billion rated universe of U.S. private label CMBS including conduits, single-asset single…