CMBS Delinquency Rate Rises in December--Sign of Things to Come - MarketWatch

Trepp, LLC, the leading provider of information, analytics and technology to the CMBS, commercial real estate and banking markets, released its December 2011 U.S. CMBS Delinquency Report today. Included in this month's report is a compilation of highlights and lowlights from 2011 (available at http://www.trepp.com ).

The December delinquency rate for U.S. commercial real estate loans in CMBS rose seven basis points to 9.58%. After a positive November report that saw the delinquency rate fall 26 basis points, the rate reversed course and moved higher in December for the third time in the last four months and the eighth time in 2011. The value of delinquent loans is now $58.5 billion.

"We noted last month that further improvements would be hard to come by," said Manus Clancy, senior managing director of Trepp. "We view this as the first of a six to twelve month stretch where the rate could increase by 75 basis points in aggregate. This will come as a result of the first wave of 2007 originated loans reaching their balloon dates over the next few months."

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