The delinquency rate1 among KBRA-rated U.S. private label commercial mortgage-backed securities (CMBS) in May increased to 7.4% from 7.1% in April. The total delinquent plus current but specially serviced loan rate (collectively, the distress rate) increased 85 basis points (bps) to 10.9%. Office and mixed-use sectors saw significant increases to their distress rate this month due to transfers in some single-asset single borrower (SASB) loans, which are detailed in this report.
In May, CMBS loans totaling $3.6 billion were newly added to the distress rate, of which 68% ($2.5 billion) comprised imminent or actual maturity default. The office sector experienced the highest volume of newly distressed loans (55.4%, $2 billion), followed by mixed-use (29.7%, $1.1 billion), and retail (8.2%, $299 million).
In this report, KBRA provides observations across our $340 billion rated universe of U.S. private label CMBS including conduits, SASB, and large loan…