National + Retail | April 21, 2020

CMBS Forbearance Requests Hit $100B in 30 Days

U.S. CMBS borrowers’ requests for coronavirus-related relief continue at a furious pace, with well over 5,000 borrowers now reaching out to master servicers, according to Fitch Ratings. The 30-day total for such requests is $100.7 billion, about 17% of the CMBS universe.

Additionally, requests by securitized Freddie Mac borrowers jumped 500%, as borrowers seek to take advantage of the GSE’s COVID-19 Relief Plan.

While forbearance terms have coalesced around the 90-day programs offered by both GSEs, Fitch cautions 90 days won’t be sufficient for most CMBS borrowers, as operating business such as hotel and retail centers take longer to recover.

“There isn’t a 90-day mark that will bring back travelers, restore consumer confidence and bring commercial business back to normal,” said Fitch’s Adam Fox. “Borrowers with hotels and retail assets with nonessential tenants will need more time to recover.”

Get CRE News in 150 words

For comments, questions or concerns, please contact Paul Bubny

Connect

Inside The Story

Connect With Fitch Ratings’ Fox

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).

Order Reprints