After a slight improvement in June, the delinquency rate among Kroll Bond Rating Agency (KBRA)-rated U.S. CMBS rose sharply in July to 3.93%, a 34-basis point increase. The total delinquent and specially serviced loan rate in the $314.8-billion KBRA-rated CMBS universe continued trending upward for the fourth straight month to 6.44%, with a 37-bp month-over-month increase.
In July, CMBS loans totaling $2.6 billion were either transferred to special servicing or became newly delinquent. Slightly more than half that total was due to imminent or actual maturity default.
Office continues to have the highest exposure, accounting for 34.7% ($898.4 million) of the newly specially serviced and newly delinquent loans, KBRA said. Retail properties came in second at 26.4% ($683.4 million) and mixed-use came in third at 23.7% ($613.9 million).
That being said, the July delinquency rate for mixed-use properties was highest at 6.71%, followed by retail at a 5.48% delinquency rate and office at 3.79%. Mixed-use also posted the highest monthly increase in the delinquency rate.
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