Delinquency Rate for KBRA-Rated US CMBS Loans Rose to 7.1% in April 

In April, the delinquency rate for KBRA-rated U.S. private label CMBS rose to 7.1% ($23.4 billion) from 6.8% ($21.1 billion) in March. The distress rate, encompassing delinquent and current but specially serviced loans, climbed 25 basis points to 10% ($32.8 billion). Delinquency rates increased across all major property types except industrial, which dropped to 0.8%, with rises ranging from 38 basis points (mixed-use) to 66 basis points (lodging). 

Newly distressed loans totaled $1.9 billion, with 52.8% ($1 billion) tied to imminent or actual maturity defaults. Retail led with 39.7% ($762.5 million) of new distress, followed by office (27.2%, $522.8 million) and mixed-use (11.9%, $227.8 million). The office sector’s distress rate surpassed 15%, up 24 basis points, while mixed-use saw the largest month-over-month distress increase at 89 basis points, and retail rose 58 basis points. 

KBRA’s analysis covers its $338.7 billion rated U.S. private label CMBS portfolio, including conduits, single-asset single borrower, and large loan transactions.