National CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
U.S. CMBS Delinquency Rate Ticks Upward in May; Office, Lodging Rates Decline
Fitch Ratings’ overall U.S. CMBS delinquency rate increased three basis points (bps) to 3.31% in May from 3.28% in April, with new delinquency volume led by large-balance office and regional mall loans outpacing resolutions. On a property-type basis, results were mixed, with office, hotel and mixed-use all posting monthly declines.
New 60+ day delinquency volume totaled $1.73 billion in May, up from $1.34 billion in April. It consisted of office (33%, $562 million), retail (28%, $474 million), and multifamily (20%, $339 million). Maturity defaults accounted for 64% ($1.11 billion) of new delinquencies, and term defaults 36% ($618 million).
Loan resolution volume decreased to $1.54 billion in May from $2.04 billion in April. Total May resolutions included $1.05 billion of loans brought current, $422 million of loan liquidations, and $69 million of loans previously 60+ days delinquent removed from Fitch’s index that are now 30 days delinquent.
- ◦Financing
