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CMBS Delinquencies Post Third Monthly Decline
The U.S. CMBS delinquency rate fell 14 basis points to 4.55% in January 2021 from year-end 2020, Fitch Ratings said Friday. The rating agency said the third consecutive monthly decline was due to the slowing pace of new delinquencies and continued strong new issuance volume.
New delinquencies decreased to $1.3 billion in January from $2 billion in December, against Fitch-rated new issuance volume of $6.1 billion in December. Hotel and retail loans comprised the lion’s share of new delinquencies.
Nonetheless, both property types saw their delinquency rates decline last month, although delinquencies for both hotel and retail CMBS are elevated compared to other sectors. The hotel sector posted a 17.88% delinquency rate for January, down 50 bps from December 2020. For retail, the monthly drop was 46 bps to 10.52%.
Ranking third for delinquencies is mixed-use at 4.21%. Multifamily and industrial each have delinquency rates below 1%.
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