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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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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 also 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.

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