The overall delinquency rate continued its decline for the eleventh consecutive reporting period following its rapid ascent from April to June 2020. As we have been reporting, despite this steady decline, defaults on CRE mortgages remain somewhat elevated across the country, driven primarily by the retail and lodging sectors. As many areas within the United States are beginning to return to a pre-pandemic level of normalcy, we expect default rates to continue to level off with more immediate and significant improvements in the hotel sector throughout the remainder of the year.

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CRED iQ monitors market performance for nearly 400 MSAs across the United States. Below is a summary of the default rates for the 50 largest metros segmented by property type. For these 50 MSAs, the highest delinquency was in Minneapolis, followed by Louisville and New Orleans. The New Orleans hotel market saw the largest month-over-month increase in delinquency. Allentown, Pennsylvania reported the lowest default rate among the 50 MSAs. The most significant month over-month decline in delinquency was in the Nashville hotel market.

Select markets from the June 2021 CRED DQ Report

About CRED iQ

CRED iQ is a commercial real estate data, analytics, and valuation platform designed to unlock investment, financing, and leasing opportunities. CRED iQ provides real-time property, loan, tenant, ownership, and valuation data for over $910 billion of commercial real estate.

CRED iQ tracks loan-level performance for the entire CMBS, CRE CLO, SBLL, and Agency universes.