VIDEO: CMBS DELINQUENCY RATES CONTINUE TO DECREASE
As the economic and commercial real estate outlook continues to improve, I've been monitoring the delinquency rates on commercial mortgage backed securities (CMBS) loans.
CMBS loans are used to purchase investment properties like multifamily, retail or office properties. The normal delinquency rate is 1.5 - 2%, but as expected those rates spiked last summer due to the pandemic, in some sectors as high as 23%.
We are now witnessing 9 consecutive months of decreasing delinquency rates, which points to an improving economy with local businesses bouncing back.