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National  + Distressed Assets  | 

CMBS Delinquencies Ebb Further in August

The CMBS delinquency rate reached recent lows in August, according to both Trepp and Fitch Ratings. Trepp’s figure of 2.98% was the lowest delinquency rate since before the pandemic began, while delinquencies for Fitch-rated CMBS fell below 2% to 1.97%, a drop of eight basis points from July. 

Fitch attributed the 8-bp drop to an increase in resolutions last month, notably in hotel and retail. In all, $1.1 billion of Fitch-rated CMBS loans was resolved in August, compared to $685 million in July. Multifamily and industrial saw slight increases in delinquencies during August, while all other property types improved, according to Fitch. 

“The declines should not be terribly shocking to players in the CMBS market,” wrote Manus Clancy, senior managing director at Trepp. “Those property segments that were crushed by the COVID-19 pandemic – hotel and retail – continue to see steady improvement each month as loans in those categories cure and/or pay off.” 

Conversely, he added, “distress in the office segment – the property type most likely to be impacted by increased work-from-home trends – will take years to play out as a result of most firms being locked into five- and 10-year leases.” 

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Inside The Story

Fitch RatingsTrepp's Clancy

About Paul Bubny

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. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

  • ◦Financing
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