NEW YORK–(BUSINESS WIRE)–#KBRA–KBRA releases a report on U.S. commercial mortgage-backed securities (CMBS) loan performance trends observed in the May 2023 servicer reporting period. The delinquency rate among KBRA-rated U.S. commercial mortgage-backed securities (CMBS) rose 52 basis points (bps) in May to 3.47%. This is one of the largest monthly increases since its last peak in June 2020.
The magnitude and composition of newly delinquent loans this month are a clear indication of the stress being felt across the CMBS and broader commercial real estate market. These loans totaled $2.7 billion for the May reporting period, which contrasts with recent months where newly delinquent loans were generally $1 billion or less. Special servicing transfers for the reporting period were also relatively high, totaling $1.7 billion, the majority of which (61.3%) were attributed to imminent or actual maturity default. Office accounted for 69% ($1.8 billion) and 88.9% ($1.5 billion) of the balance of newly delinquent loans and newly specially serviced loans this month, respectively.
The newly delinquent office loans this month include $782.8 million 375 Park Avenue (CGCMT 2013-375, COMM 2013-CCRE8), $350 million ADV Portfolio (CSMC 2021-ADV), and $275 million EYP Plaza (BFLD 2020-EYP). The newly specially serviced office loans include $309.8 million River North Point (GSMS 2018-RIVR) and $232.5 million Aspiria Office Campus (JPMCC 2021-BOLT).
In this report, KBRA provides observations across our $315 billion rated universe of U.S. private label CMBS including conduits, single-asset single borrower (SASB), and large loan (LL) transactions.
Click here to view the report.
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Contacts
Cammy Wan, Senior Analyst, CMBS Ratings Surveillance
+1 (646) 731-3327
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Roy Chun, Senior Managing Director, CMBS Ratings Surveillance
+1 (646) 731-2376
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Business Development
Dan Stallone, Senior Director
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