{"id":4173,"date":"2024-12-06T03:19:04","date_gmt":"2024-12-06T03:19:04","guid":{"rendered":"https:\/\/cred-iq.com\/blog\/?p=4173"},"modified":"2024-12-25T02:04:31","modified_gmt":"2024-12-25T02:04:31","slug":"cred-iqs-overall-distress-rate-reaches-double-digits","status":"publish","type":"post","link":"https:\/\/cred-iq.com\/blog\/2024\/12\/06\/cred-iqs-overall-distress-rate-reaches-double-digits\/","title":{"rendered":"CRED iQ\u2019s Overall Distress Rate Reaches Double Digits"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\"><strong>Office Distress Rate Climbs 70 Basis Points to 15.5% in November<\/strong><\/h2>\n\n\n\n<p><\/p>\n\n\n\n<p>The CRED iQ research team evaluated payment statuses reported for each loan (securitized by CMBS financing), along with special servicing status as part of our monthly distress update. The office sector reached a new high this month as it jumped 70 basis points to 15.5%.&nbsp;<\/p>\n\n\n\n<p>The overall CRED iQ distress rate added 40 basis points and crossed into double digits for the first time this year at 10%. On a positive note, four of the six major property types that CRED iQ tracks saw decreases in November. The November print represents the third consecutive record high for the index. CRED iQ\u2019s specially serviced rate added 40 basis points to 9.1%. The CRED iQ delinquency rate rose from 7.2% to 7.8% in November.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-gallery columns-1 is-cropped wp-block-gallery-1 is-layout-flex wp-block-gallery-is-layout-flex\"><ul class=\"blocks-gallery-grid\"><li class=\"blocks-gallery-item\"><figure><img loading=\"lazy\" decoding=\"async\" width=\"1500\" height=\"1500\" src=\"https:\/\/cred-iq.com\/blog\/wp-content\/uploads\/2024\/12\/CRED-iQ-CMBS-Distressed-Rates-Nov-1.png\" alt=\"\" data-id=\"4176\" data-full-url=\"https:\/\/cred-iq.com\/blog\/wp-content\/uploads\/2024\/12\/CRED-iQ-CMBS-Distressed-Rates-Nov-1.png\" data-link=\"https:\/\/cred-iq.com\/blog\/?attachment_id=4176\" class=\"wp-image-4176\" srcset=\"https:\/\/cred-iq.com\/blog\/wp-content\/uploads\/2024\/12\/CRED-iQ-CMBS-Distressed-Rates-Nov-1.png 1500w, https:\/\/cred-iq.com\/blog\/wp-content\/uploads\/2024\/12\/CRED-iQ-CMBS-Distressed-Rates-Nov-1-150x150.png 150w, https:\/\/cred-iq.com\/blog\/wp-content\/uploads\/2024\/12\/CRED-iQ-CMBS-Distressed-Rates-Nov-1-300x300.png 300w, https:\/\/cred-iq.com\/blog\/wp-content\/uploads\/2024\/12\/CRED-iQ-CMBS-Distressed-Rates-Nov-1-768x768.png 768w, https:\/\/cred-iq.com\/blog\/wp-content\/uploads\/2024\/12\/CRED-iQ-CMBS-Distressed-Rates-Nov-1-1024x1024.png 1024w, https:\/\/cred-iq.com\/blog\/wp-content\/uploads\/2024\/12\/CRED-iQ-CMBS-Distressed-Rates-Nov-1-696x696.png 696w, https:\/\/cred-iq.com\/blog\/wp-content\/uploads\/2024\/12\/CRED-iQ-CMBS-Distressed-Rates-Nov-1-1068x1068.png 1068w\" sizes=\"auto, (max-width: 1500px) 100vw, 1500px\" \/><\/figure><\/li><\/ul><\/figure>\n\n\n\n<p><strong>Segment Review<\/strong><\/p>\n\n\n\n<p>After taking a breather in October the office segment distress rate continued to climb\u2014adding 70 basis points &nbsp;to 15.5%, a new high.&nbsp; Office remains at the top of all segments with respect to distress rate.<\/p>\n\n\n\n<p>Retail continues its reign in the number two slot, with an 11.5% distress rate, shaving 20 basis points in November.<\/p>\n\n\n\n<p>Right behind retail, multifamily has an 11.2% distress rate\u2014adding 20 basis points to October.&nbsp;&nbsp; Multifamily has experienced the sharpest distress increase of all property types in 2024.&nbsp; The January 2024 multifamily distress rate was 2.6%, yielding a stunning 842 basis point increase in the distress rate over the course of 2024.<\/p>\n\n\n\n<p>The hotel segment distress rate decreased by 40 basis points\u2014right back to the September distress rate of 8.6% maintaining a secure, if not a bit distant 4<sup>th<\/sup> place on the distress league tables.&nbsp;<\/p>\n\n\n\n<p>Self-storage (1.7% &#8211;down from 3.6% last month), and industrial (0.6% &#8211;down from 1.2% last month) round out 5<sup>th<\/sup> and 6<sup>th<\/sup> place respectively.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1500\" height=\"1500\" src=\"https:\/\/cred-iq.com\/blog\/wp-content\/uploads\/2024\/12\/CRED-iQ-CMBS-Distressed-Rates-by-Property-Type-Nov.png\" alt=\"\" class=\"wp-image-4177\" srcset=\"https:\/\/cred-iq.com\/blog\/wp-content\/uploads\/2024\/12\/CRED-iQ-CMBS-Distressed-Rates-by-Property-Type-Nov.png 1500w, https:\/\/cred-iq.com\/blog\/wp-content\/uploads\/2024\/12\/CRED-iQ-CMBS-Distressed-Rates-by-Property-Type-Nov-150x150.png 150w, https:\/\/cred-iq.com\/blog\/wp-content\/uploads\/2024\/12\/CRED-iQ-CMBS-Distressed-Rates-by-Property-Type-Nov-300x300.png 300w, https:\/\/cred-iq.com\/blog\/wp-content\/uploads\/2024\/12\/CRED-iQ-CMBS-Distressed-Rates-by-Property-Type-Nov-768x768.png 768w, https:\/\/cred-iq.com\/blog\/wp-content\/uploads\/2024\/12\/CRED-iQ-CMBS-Distressed-Rates-by-Property-Type-Nov-1024x1024.png 1024w, https:\/\/cred-iq.com\/blog\/wp-content\/uploads\/2024\/12\/CRED-iQ-CMBS-Distressed-Rates-by-Property-Type-Nov-696x696.png 696w, https:\/\/cred-iq.com\/blog\/wp-content\/uploads\/2024\/12\/CRED-iQ-CMBS-Distressed-Rates-by-Property-Type-Nov-1068x1068.png 1068w\" sizes=\"auto, (max-width: 1500px) 100vw, 1500px\" \/><\/figure>\n\n\n\n<p><strong>Payment Status<\/strong><\/p>\n\n\n\n<p>Looking at the distressed loan payment status, 14.2% of the loans are current\u2014a steep 400 point drop.&nbsp; Additionally, 2.7% of loans are attributed to late (but in the grace period) and 5.2% of loans were late (but less than 30 days DQ). When we combine these three metrics 22.1%&nbsp; of all loans were current \/ late within the grace period \/ less than 30 days delinquent &#8211;a reduction of 250 basis points from last month (adding to the 100BP reduction in our previous print)<\/p>\n\n\n\n<p>Non-Performing Matured increased from 39.9% to &nbsp;41.9%. Meanwhile, Performing Matured inched up from 16.7% in our October report to 16.9%.&nbsp;&nbsp; 90+ Days Delinquent shaved 30 basis points in November to 12.7%.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1500\" height=\"1500\" src=\"https:\/\/cred-iq.com\/blog\/wp-content\/uploads\/2024\/12\/CRED-iQ-CMBS-Distressed-Loan-Payment-Status-Nov.png\" alt=\"\" class=\"wp-image-4178\" srcset=\"https:\/\/cred-iq.com\/blog\/wp-content\/uploads\/2024\/12\/CRED-iQ-CMBS-Distressed-Loan-Payment-Status-Nov.png 1500w, https:\/\/cred-iq.com\/blog\/wp-content\/uploads\/2024\/12\/CRED-iQ-CMBS-Distressed-Loan-Payment-Status-Nov-150x150.png 150w, https:\/\/cred-iq.com\/blog\/wp-content\/uploads\/2024\/12\/CRED-iQ-CMBS-Distressed-Loan-Payment-Status-Nov-300x300.png 300w, https:\/\/cred-iq.com\/blog\/wp-content\/uploads\/2024\/12\/CRED-iQ-CMBS-Distressed-Loan-Payment-Status-Nov-768x768.png 768w, https:\/\/cred-iq.com\/blog\/wp-content\/uploads\/2024\/12\/CRED-iQ-CMBS-Distressed-Loan-Payment-Status-Nov-1024x1024.png 1024w, https:\/\/cred-iq.com\/blog\/wp-content\/uploads\/2024\/12\/CRED-iQ-CMBS-Distressed-Loan-Payment-Status-Nov-696x696.png 696w, https:\/\/cred-iq.com\/blog\/wp-content\/uploads\/2024\/12\/CRED-iQ-CMBS-Distressed-Loan-Payment-Status-Nov-1068x1068.png 1068w\" sizes=\"auto, (max-width: 1500px) 100vw, 1500px\" \/><\/figure><\/div>\n\n\n\n<p><strong>Analysis Methodology<\/strong><\/p>\n\n\n\n<p>It\u2019s important to note that CRED iQ\u2019s distress rate factors in all CMBS properties that are securitized in conduits and single-borrower large loan deal types.&nbsp; CRED iQ tracks Freddie Mac, Fannie Mae, Ginnie Mae, and CRE CLO loan metrics in separate analyses.<\/p>\n\n\n\n<p>CRED iQ\u2019s distress rate aggregates the two indicators of distress \u2013 delinquency rate and specially serviced rate \u2013 yielding the distress rate. The index includes any loan with a payment status of 30+ days delinquent or worse, any loan actively with the special servicer, and includes non-performing and performing loans that have failed to pay off at maturity.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button has-custom-width wp-block-button__width-50 is-style-round\"><a class=\"wp-block-button__link has-vivid-cyan-blue-to-vivid-purple-gradient-background has-background\" href=\"https:\/\/pages.cred-iq.com\/trialrequest\" target=\"_blank\" rel=\"noreferrer noopener\">Access CRED iQ Today<\/a><\/div>\n<\/div>\n\n\n\n<p><strong>About CRED iQ<\/strong><\/p>\n\n\n\n<p><a href=\"https:\/\/cred-iq.com\/about\" target=\"_blank\" rel=\"noreferrer noopener\">CRED iQ<\/a>&nbsp;is a market data provider that offers a robust suite of data and software solutions tailored for commercial real estate and finance professionals.<\/p>\n\n\n\n<p>With over $2.3 trillion of CRE loans, CRED iQ delivers instant access to a comprehensive range of financial data and analytics for millions of properties in every market. CRED iQ\u2019s data and analytical capabilities are instrumental in helping investors, lenders and brokers make informed and strategic decisions critical to their business.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Office Distress Rate Climbs 70 Basis Points to 15.5% in November The CRED iQ research team evaluated payment statuses reported for each loan (securitized by CMBS financing), along with special servicing status as part of our monthly distress update. The office sector reached a new high this month as it jumped 70 basis points to [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":4174,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","footnotes":""},"categories":[13,9],"tags":[4,5,6,7,8,14],"class_list":{"0":"post-4173","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-cmbs-delinquency-report","8":"category-research","9":"tag-cmbs","10":"tag-commercial-real-estate-data","11":"tag-delinquency","12":"tag-distressed-properties","13":"tag-loan-data","14":"tag-special-servicing"},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/cred-iq.com\/blog\/wp-json\/wp\/v2\/posts\/4173","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cred-iq.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cred-iq.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cred-iq.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/cred-iq.com\/blog\/wp-json\/wp\/v2\/comments?post=4173"}],"version-history":[{"count":1,"href":"https:\/\/cred-iq.com\/blog\/wp-json\/wp\/v2\/posts\/4173\/revisions"}],"predecessor-version":[{"id":4212,"href":"https:\/\/cred-iq.com\/blog\/wp-json\/wp\/v2\/posts\/4173\/revisions\/4212"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cred-iq.com\/blog\/wp-json\/wp\/v2\/media\/4174"}],"wp:attachment":[{"href":"https:\/\/cred-iq.com\/blog\/wp-json\/wp\/v2\/media?parent=4173"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cred-iq.com\/blog\/wp-json\/wp\/v2\/categories?post=4173"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cred-iq.com\/blog\/wp-json\/wp\/v2\/tags?post=4173"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}