The CMBS delinquency rate has steadily improved since a peak in June, but some asset classes are keeping the overall rate high. A new report from DBRS Morningstar looks closely at the CMBS delinquency rates from the last year, and found that retail and hotel properties could be hindering a recovery.
Overall, the CMBS delinquency rate reached a high of 5.88% in June and fell 148 basis points to 4.45% in December. These numbers aren’t as catastrophic as they might seem. During the height of the financial crisis, the CMBS delinquency rate climbed to 8.53%. More good news: the rate has declined steadily across all asset classes since June.