KC-Area Commercial Realty Delinquencies Send Mixed Signals

Loan delinquencies on commercial real estate in the Kansas City area in November were down nearly a full percentage point from November 2013, the New York-based realty analytics firm Trepp said today. That’s the good news. The less-than-good? For a fifth straight month, November’s rate inched up, to 5.02 percent, significantly higher than the 3.22 percent rate recorded in June, the low-water mark for the year.

Trepp noted that out of 226 CRE loans with a book value of $2.39 billion, only 14 were more than 30 days delinquent, representing $119.91 million in loan value. Kansas City, Overland Park and Lee’s Summit each had four properties on the delinquency list, the two others were in Shawnee.

The 5.02 percent rate for November was still a healthy improvement from the 7.06 percent rate recorded in December 2013, and down 91 basis points from where the region started the year in January, 5.93 percent.