October 2021 Delinquency Report

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The overall delinquency rate declined for the 15th consecutive month since its peak in June 2020, continuing a trend of recovery from the spike in distressed assets caused by the pandemic. The delinquency rate, equal to the percentage of all delinquent specially serviced loans and delinquent non-specially serviced loans, for CRED iQ’s sample universe of $500+ billion in CMBS conduit and single-asset single-borrower (SASB) loans was 5.30%. CRED iQ’s special servicing rate, equal to the percentage of CMBS loans that have transferred to special servicing, was equal to 7.57%. Aggregating these two indicators of distress – delinquency rate and special servicing rate – into an overall distressed rate (DQ + SS%) equals 7.81% of CMBS loans that are specially serviced, delinquent, or a combination of both.

DQ = All delinquent loans in the conduit, SASB and CRE CLO universe, including specially serviced and non-specially serviced loans
SS = All specially serviced loans in the conduit, SASB and CRE CLO universe, including current, delinquent and REO
DQ + SS = All distressed loans in the conduit, SASB and CRE CLO universe that are delinquent, specially serviced, or a combination of both

By property type, lodging and retail had the highest individual delinquency rates. Delinquency for each property type declined compared to the prior month and each has exhibited an overall downward trend over the trailing twelve months. The lodging delinquency rate has made the most dramatic recovery over the past year, declining from just under 20% in October 2020 to approximately 11% in September 2021.

DQ = All delinquent loans in the conduit, SASB and CRE CLO universe, including specially serviced and non-specially serviced loans
SS = All specially serviced loans in the conduit, SASB and CRE CLO universe, including current, delinquent and REO
DQ + SS = All distressed loans in the conduit, SASB and CRE CLO universe that are delinquent, specially serviced, or a combination of both

Despite a clear signal of improvement in the lodging sector, this property type showed the most volatility when evaluating performance across markets. Lodging accounted for 75% of the biggest month-over-month changes when broken out by market, as exhibited in the table above.

CRED iQ monitors market performance for nearly 400 MSAs across the United States covering over $900 billion in outstanding CRE debt. Minneapolis, Louisville, New Orleans, Cleveland, and Milwaukee continue to be the MSAs with the highest rate of distressed properties, which is consistent with the prior month. This month, Sacramento overtook Allentown as the MSA with the lowest distressed rate among the Top 50. The majority of MSAs saw improvements with overall declines in the percentage of distressed properties. Only 8 of the Top 50 MSAs exhibited additional distress compared to the prior month. The Salt Lake City market had the greatest improvement with nearly a 30% decrease in the percentage of distressed properties. The improvement was largely driven by South Towne Center, a 1.1 million-sf regional mall that returned from special servicing to the master servicer after a loan modification.

For the full CRED DQ report, download here:

MSA – Property Type DQ or SS (millions)  DQ/SS (%) Monthly Change
Allentown-Bethlehem-Easton, PA-NJ MSA$19.40.6%0.01%
Hotel$0.00.0%0.00%
Industrial$0.00.0%0.00%
Multifamily$0.00.0%0.00%
Office$0.00.0%0.00%
Other$0.00.0%0.00%
Retail$19.45.1%0.00%
Self Storage$0.00.0%0.00%
Atlanta-Sandy Springs-Marietta, GA MSA$745.83.2%0.04%
Hotel$247.413.0%0.03%
Industrial$0.00.0%0.00%
Multifamily$4.70.0%0.00%
Office$34.01.4%0.21%
Other$0.00.0%0.00%
Retail$459.717.0%-0.10%
Self Storage$0.00.0%0.00%
Austin-Round Rock, TX MSA$528.65.7%-0.24%
Hotel$419.145.1%0.42%
Industrial$0.00.0%0.00%
Multifamily$1.50.0%-0.55%
Office$0.00.0%0.00%
Other$0.00.0%0.00%
Retail$105.515.7%0.13%
Self Storage$2.62.2%0.13%
Baltimore-Towson, MD MSA$416.64.3%-0.34%
Hotel$128.528.7%0.89%
Industrial$0.00.0%0.00%
Multifamily$8.80.1%0.04%
Office$22.93.6%0.01%
Other$0.00.0%0.00%
Retail$256.424.3%-2.25%
Self Storage$0.00.0%0.00%
Birmingham-Hoover, AL MSA$46.71.7%-0.11%
Hotel$22.622.4%0.99%
Industrial$0.00.0%0.00%
Multifamily$1.10.1%0.10%
Office$0.00.0%0.00%
Other$0.00.0%0.00%
Retail$22.93.2%0.00%
Self Storage$0.00.0%0.00%
Boston-Cambridge-Quincy, MA-NH MSA$384.82.2%0.14%
Hotel$127.016.7%2.39%
Industrial$0.00.0%0.00%
Multifamily$0.00.0%0.00%
Office$0.00.0%0.00%
Other$0.00.0%0.00%
Retail$257.813.2%0.20%
Self Storage$0.00.0%0.00%
Bridgeport-Stamford-Norwalk, CT MSA$189.94.9%-0.77%
Hotel$63.651.4%-0.34%
Industrial$17.813.7%0.00%
Multifamily$0.00.0%0.00%
Office$63.25.3%-2.64%
Other$23.65.8%0.00%
Retail$21.76.9%0.82%
Self Storage$0.00.0%0.00%
Charlotte-Gastonia-Concord, NC-SC MSA$243.43.1%-1.24%
Hotel$118.710.5%-0.08%
Industrial$0.00.0%0.00%
Multifamily$0.00.0%0.00%
Office$21.32.4%-0.02%
Other$85.024.2%-1.64%
Retail$18.41.7%-6.21%
Self Storage$0.00.0%0.00%
Chicago-Naperville-Joliet, IL-IN-WI MSA$1,998.57.4%-0.33%
Hotel$1,121.045.1%-7.54%
Industrial$0.00.0%0.00%
Multifamily$124.01.3%-0.13%
Office$393.05.6%0.20%
Other$101.25.1%-0.82%
Retail$259.37.7%-1.36%
Self Storage$0.00.0%0.00%
Cincinnati-Middletown, OH-KY-IN MSA$304.48.0%-0.59%
Hotel$141.046.3%-0.03%
Industrial$0.00.0%0.00%
Multifamily$0.00.0%-0.10%
Office$11.52.2%-0.12%
Other$15.75.0%-0.01%
Retail$135.219.5%-1.33%
Self Storage$1.01.7%0.09%
Cleveland-Elyria-Mentor, OH MSA$503.612.4%-1.95%
Hotel$129.757.0%-2.04%
Industrial$0.00.0%0.00%
Multifamily$4.30.3%0.27%
Office$105.212.9%0.27%
Other$178.041.4%1.10%
Retail$86.411.4%-9.24%
Self Storage$0.00.0%0.00%
Columbus, OH MSA$251.94.3%0.06%
Hotel$84.426.8%0.05%
Industrial$11.92.8%-0.02%
Multifamily$4.30.1%0.00%
Office$12.52.8%0.42%
Other$0.00.0%0.00%
Retail$127.815.1%0.05%
Self Storage$11.018.9%1.03%
Dallas-Fort Worth-Arlington, TX MSA$926.22.7%-0.34%
Hotel$437.612.2%-0.12%
Industrial$1.70.1%0.00%
Multifamily$47.70.2%0.00%
Office$166.34.7%-0.89%
Other$23.81.1%-0.26%
Retail$237.19.5%-2.37%
Self Storage$11.92.4%0.14%
Denver-Aurora, CO MSA$312.31.9%-0.11%
Hotel$43.35.2%0.20%
Industrial$0.00.0%0.00%
Multifamily$0.00.0%0.00%
Office$194.69.4%0.10%
Other$7.01.4%0.17%
Retail$64.14.2%-1.54%
Self Storage$3.32.0%0.19%
Detroit-Warren-Livonia, MI MSA$522.05.9%-0.87%
Hotel$308.542.6%0.98%
Industrial$45.98.5%-0.06%
Multifamily$38.81.1%-0.12%
Office$0.00.0%-0.40%
Other$22.43.5%0.10%
Retail$106.46.5%-3.61%
Self Storage$0.00.0%0.00%
Hartford-West Hartford-East Hartford, CT MSA$211.98.6%-0.03%
Hotel$89.162.7%2.15%
Industrial$0.00.0%0.00%
Multifamily$3.80.3%0.00%
Office$87.622.2%0.02%
Other$1.20.6%0.00%
Retail$30.312.8%0.25%
Self Storage$0.00.0%0.00%
Houston-Sugar Land-Baytown, TX MSA$1,427.15.2%-0.16%
Hotel$693.459.2%-0.41%
Industrial$4.20.6%-1.01%
Multifamily$67.60.5%-0.09%
Office$541.013.7%0.22%
Other$1.50.0%-0.84%
Retail$89.42.4%-0.21%
Self Storage$29.96.3%0.54%
Indianapolis-Carmel, IN MSA$389.27.8%-0.17%
Hotel$163.125.9%-0.69%
Industrial$0.00.0%0.00%
Multifamily$98.24.2%-0.33%
Office$75.912.7%2.11%
Other$9.84.5%-0.13%
Retail$38.17.1%0.06%
Self Storage$4.15.3%0.11%
Jacksonville, FL MSA$67.61.3%-0.02%
Hotel$38.69.2%0.33%
Industrial$0.00.0%0.00%
Multifamily$20.00.6%-0.01%
Office$0.00.0%0.00%
Other$0.00.0%0.00%
Retail$9.02.1%0.00%
Self Storage$0.00.0%0.00%
Kansas City, MO-KS MSA$150.43.2%-0.33%
Hotel$85.027.0%-4.14%
Industrial$0.00.0%0.00%
Multifamily$7.60.3%-0.01%
Office$0.00.0%0.00%
Other$2.81.0%-0.26%
Retail$53.38.3%0.14%
Self Storage$1.70.8%0.05%
Las Vegas-Paradise, NV MSA$393.42.0%0.01%
Hotel$18.30.3%0.00%
Industrial$0.00.0%0.00%
Multifamily$0.00.0%0.00%
Office$10.21.7%0.02%
Other$0.00.0%0.00%
Retail$362.07.6%0.02%
Self Storage$2.81.4%0.09%
Los Angeles-Long Beach-Santa Ana, CA MSA$1,943.54.0%-0.10%
Hotel$665.916.5%0.64%
Industrial$0.00.0%-0.18%
Multifamily$124.50.6%-0.05%
Office$389.33.3%0.19%
Other$170.65.6%-0.91%
Retail$589.78.8%-0.62%
Self Storage$3.50.4%0.00%
Louisville/Jefferson County, KY-IN MSA$631.720.2%-0.19%
Hotel$242.956.1%1.93%
Industrial$0.00.0%0.00%
Multifamily$3.80.3%-0.01%
Office$0.00.0%0.00%
Other$0.00.0%0.00%
Retail$385.059.1%0.05%
Self Storage$0.00.0%0.00%
Memphis, TN-AR-MS MSA$156.76.5%0.00%
Hotel$56.329.0%1.53%
Industrial$0.00.0%0.00%
Multifamily$17.81.7%-0.01%
Office$0.00.0%0.00%
Other$18.433.6%-0.18%
Retail$62.615.4%0.03%
Self Storage$1.71.1%0.06%
Miami-Fort Lauderdale-Pompano Beach, FL MSA$682.43.2%-0.70%
Hotel$375.58.5%0.25%
Industrial$0.00.0%0.00%
Multifamily$6.70.1%0.01%
Office$21.61.1%0.01%
Other$8.70.6%0.01%
Retail$269.95.7%-3.18%
Self Storage$0.00.0%0.00%
Milwaukee-Waukesha-West Allis, WI MSA$254.910.4%-0.02%
Hotel$35.723.1%-0.01%
Industrial$0.00.0%0.00%
Multifamily$0.00.0%0.00%
Office$66.311.8%0.19%
Other$0.00.0%0.00%
Retail$153.030.5%0.00%
Self Storage$0.00.0%0.00%
Minneapolis-St. Paul-Bloomington, MN-WI MSA$1,934.723.5%0.12%
Hotel$332.353.8%1.24%
Industrial$4.11.5%-0.03%
Multifamily$0.00.0%0.00%
Office$155.07.7%0.31%
Other$11.72.8%-0.14%
Retail$1,431.871.1%0.52%
Self Storage$0.00.0%0.00%
Nashville-Davidson-Murfreesboro-Franklin, TN MSA$222.03.5%-2.17%
Hotel$212.515.8%-9.00%
Industrial$0.00.0%0.00%
Multifamily$0.00.0%0.00%
Office$0.00.0%0.00%
Other$0.00.0%0.00%
Retail$9.51.2%-0.33%
Self Storage$0.00.0%0.00%
New Orleans-Metairie-Kenner, LA MSA$432.713.2%-1.17%
Hotel$396.637.4%-3.07%
Industrial$0.00.0%0.00%
Multifamily$13.41.7%0.00%
Office$0.00.0%0.00%
Other$0.00.0%0.00%
Retail$22.83.1%0.21%
Self Storage$0.00.0%0.00%
New York-Northern New Jersey-Long Island, NY-NJ-PA MSA$6,558.75.6%-0.06%
Hotel$1,718.246.4%-3.41%
Industrial$7.50.4%0.00%
Multifamily$580.71.8%0.19%
Office$792.91.9%0.17%
Other$1,541.67.4%-0.44%
Retail$1,917.813.9%0.13%
Self Storage$0.00.0%0.00%
Orlando-Kissimmee, FL MSA$445.53.9%-0.20%
Hotel$169.86.0%-0.49%
Industrial$0.00.0%0.00%
Multifamily$25.40.4%0.00%
Office$47.19.6%0.01%
Other$0.00.0%0.00%
Retail$203.223.6%3.08%
Self Storage$0.00.0%0.00%
Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA$934.15.1%-0.25%
Hotel$340.336.6%-4.31%
Industrial$0.00.0%0.00%
Multifamily$117.41.3%-0.02%
Office$57.61.5%0.23%
Other$57.14.2%-1.44%
Retail$361.614.3%0.06%
Self Storage$0.00.0%0.00%
Phoenix-Mesa-Scottsdale, AZ MSA$428.32.4%-0.62%
Hotel$57.63.6%-1.27%
Industrial$10.21.9%0.04%
Multifamily$0.00.0%0.00%
Office$23.81.1%-0.02%
Other$180.524.1%0.02%
Retail$156.37.2%-0.26%
Self Storage$0.00.0%0.00%
Pittsburgh, PA MSA$196.04.2%-0.03%
Hotel$123.645.8%2.91%
Industrial$0.00.0%0.00%
Multifamily$0.00.0%0.00%
Office$15.41.7%0.00%
Other$8.12.1%0.02%
Retail$48.97.1%-0.17%
Self Storage$0.00.0%0.00%
Portland-Vancouver-Beaverton, OR-WA MSA$514.77.9%-0.31%
Hotel$502.962.7%3.51%
Industrial$0.00.0%0.00%
Multifamily$10.20.2%-0.01%
Office$1.60.5%0.00%
Other$0.00.0%0.00%
Retail$0.00.0%0.00%
Self Storage$0.00.0%0.00%
Raleigh-Cary, NC MSA$135.13.3%0.02%
Hotel$86.621.1%1.92%
Industrial$0.00.0%0.00%
Multifamily$0.00.0%0.00%
Office$12.74.0%0.00%
Other$0.00.0%0.00%
Retail$35.89.1%0.95%
Self Storage$0.00.0%0.00%
Richmond, VA MSA$141.74.1%-0.09%
Hotel$50.617.8%0.00%
Industrial$6.94.8%-0.01%
Multifamily$0.00.0%0.00%
Office$0.00.0%0.00%
Other$0.00.0%0.00%
Retail$84.315.3%0.00%
Self Storage$0.00.0%0.00%
Riverside-San Bernardino-Ontario, CA MSA$331.13.5%-0.66%
Hotel$84.818.4%1.27%
Industrial$0.00.0%0.00%
Multifamily$2.40.1%0.00%
Office$0.00.0%0.00%
Other$0.00.0%0.00%
Retail$243.911.1%-2.76%
Self Storage$0.00.0%0.00%
Sacramento-Arden-Arcade-Roseville, CA MSA$31.00.6%-0.01%
Hotel$6.31.7%0.00%
Industrial$0.00.0%0.00%
Multifamily$0.00.0%0.00%
Office$11.01.9%0.00%
Other$0.00.0%0.00%
Retail$13.71.8%-0.05%
Self Storage$0.00.0%0.00%
Salt Lake City, UT MSA$32.30.9%-4.16%
Hotel$32.310.7%-4.56%
Industrial$0.00.0%0.00%
Multifamily$0.00.0%0.00%
Office$0.00.0%0.00%
Other$0.00.0%0.00%
Retail$0.00.0%-29.87%
Self Storage$0.00.0%0.00%
San Antonio, TX MSA$193.33.0%-0.13%
Hotel$26.27.8%0.07%
Industrial$0.00.0%0.00%
Multifamily$13.10.3%0.12%
Office$0.00.0%0.00%
Other$0.00.0%-0.24%
Retail$152.517.3%-1.47%
Self Storage$1.50.9%0.07%
San Diego-Carlsbad-San Marcos, CA MSA$217.22.0%-0.19%
Hotel$79.53.9%0.17%
Industrial$0.00.0%0.00%
Multifamily$0.00.0%-0.19%
Office$0.00.0%0.00%
Other$20.83.4%0.06%
Retail$117.010.0%-0.26%
Self Storage$0.00.0%0.00%
San Francisco-Oakland-Fremont, CA MSA$332.31.5%-0.02%
Hotel$212.09.1%0.16%
Industrial$0.00.0%0.00%
Multifamily$23.10.3%0.00%
Office$18.90.2%-0.01%
Other$30.61.7%0.01%
Retail$47.83.6%0.00%
Self Storage$0.00.0%0.00%
San Jose-Sunnyvale-Santa Clara, CA MSA$137.11.0%-0.27%
Hotel$122.36.1%-1.59%
Industrial$0.00.0%0.00%
Multifamily$0.00.0%0.00%
Office$14.70.2%0.00%
Other$0.00.0%0.00%
Retail$0.00.0%0.00%
Self Storage$0.00.0%0.00%
Seattle-Tacoma-Bellevue, WA MSA$201.91.2%-0.26%
Hotel$195.115.5%-2.47%
Industrial$0.00.0%0.00%
Multifamily$0.00.0%0.00%
Office$0.00.0%0.00%
Other$0.00.0%0.00%
Retail$6.80.4%0.00%
Self Storage$0.00.0%0.00%
St. Louis, MO-IL MSA$422.69.7%0.06%
Hotel$58.620.6%-0.01%
Industrial$0.00.0%0.00%
Multifamily$23.31.4%-0.01%
Office$107.019.1%-0.06%
Other$24.74.9%0.01%
Retail$209.020.5%0.37%
Self Storage$0.00.0%0.00%
Tampa-St. Petersburg-Clearwater, FL$385.84.2%0.23%
Hotel$74.96.5%0.18%
Industrial$0.00.0%0.00%
Multifamily$34.70.6%0.01%
Office$20.33.4%-0.65%
Other$0.00.0%0.00%
Retail$256.027.4%8.65%
Self Storage$0.00.0%0.00%
Tucson, AZ MSA$265.29.2%1.73%
Hotel$1.40.5%0.00%
Industrial$0.00.0%0.00%
Multifamily$0.00.0%0.00%
Office$0.00.0%0.00%
Other$0.00.0%0.00%
Retail$263.839.5%20.83%
Self Storage$0.00.0%0.00%
Virginia Beach-Norfolk-Newport News, VA-NC MSA$155.63.6%-2.17%
Hotel$24.65.3%0.04%
Industrial$21.213.1%0.01%
Multifamily$0.00.0%0.00%
Office$12.43.0%-0.02%
Other$0.00.0%0.00%
Retail$97.311.9%-8.71%
Self Storage$0.00.0%-9.91%
Washington-Arlington-Alexandria, DC-VA-MD-WV MSA$787.02.8%-0.75%
Hotel$59.15.3%-0.01%
Industrial$0.00.0%0.00%
Multifamily$1.30.0%0.00%
Office$309.14.5%-3.42%
Other$249.712.3%-0.16%
Retail$167.95.4%0.02%
Self Storage$0.00.0%0.00%
Grand Total$29,139.04.4%-0.28%