US commercial property delinquencies rise further in July, report says
July 26, 2023 | Matt Tracy | Reuters
Nearly $12 billon of loans in U.S. commercial mortgage-backed securities (CMBS) became newly delinquent, pushing the late payment rate up by 34 basis points from June to 3.93%, a report by credit rating agency KBRA said on Wednesday.
The rise in the rate reflects continued stress in the U.S. commercial real estate sector as a post-pandemic environment had more people working from home or shopping online.
The total rate of delinquent loans or those that entered special servicing rose in July for the fourth straight month and now stands at 6.44%, the report said.
