After a modest level of CMBS delinquencies pre-COVID-19, at least July showed some signs of hope. The overall rate of default fell significantly to 9.6%, but it is still at very elevated levels.
Overall CMBS delinquencies decline; hospitality and retail remain elevated
There are still vast difference in various real estate sectors. Lodging and retail commercial mortgage-backed securities default rates are both above 15%. Industrial defaults are still almost non-existent, highlighting the differences in the real economy.