Continuing a trend that has been in place for nine months, CMBS delinquencies fell month over month in March, Trepp and Fitch Ratings reported. For Fitch-rated CMBS transactions, the decline was 23 basis points to 4.1%; Trepp noted a 22-bp drop to 6.58%.
Driving the March decline were resolutions of retail loans, Fitch reported. “Both resolution activity and new issuance volume remain strong, and the pace of new delinquencies has slowed considerably,” according to Fitch.
Trepp’s Manus Clancy wrote, “Delinquency rates started increasing a year ago, as lockdown mandates issued to stem the spread of the coronavirus started impacting property owners' ability to collect rent payments.” Following spikes last May and June, though, they have declined every month since then.
However, CMBS delinquencies remain elevated compared to their year-ago levels, according to Trepp data. In March 2020, prior to the pandemic influencing an uptick, the delinquency rate was 1.6%.
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism.
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