CMBS Delinquencies, Special Servicing Rate Improve in August
Fitch Ratings’ U.S. CMBS delinquency rate fell 26 basis points to 3.33% in August from 3.59% in July, the largest monthly decline since the onset of the pandemic. Separately, Trepp reported that its CMBS special servicing rate declined for the 11tth consecutive month in August, led by improvements in the lodging and retail sectors.
Resolutions in Fitch-rated CMBS totaled $1.6 billion in August, compared with $1.7 billion in July; these were mostly hotel ($490 million) and retail loans ($820 million). The largest was the $167-million resolution of a loan secured by Newport Centre, a regional mall in Jersey City.
New delinquencies were $610 million in August, the lowest monthly volume since April 2020. Multifamily delinquencies ticked upward by two bps to 0.51%, the second lowest delinquency rate after industrial at 0.17%.
Trepp’s special servicing rate for August was 7.79%, compared to the all-time high of 13.36% in May 2012.
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).