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Delinquencies Rise in June for Fitch-Rated CMBS
Fitch Ratings said its overall U.S. CMBS delinquency rate increased by two basis points to 3.10% in June from 3.08% in May. The uptick was driven by a rise in new office delinquencies, partially offset by continued loan resolutions and strong new issuance.
New 60+ day delinquencies on Fitch-rated CMBS increased to $2.01 billion in June from $1.37 billion in May. Office loans made up 53% of new delinquencies, followed by hotel (14%) and mixed-use (13%). Term defaults accounted for 63%, with maturity defaults at 37%.
Resolution volume increased to $1.50 billion in June from $848 million in May, including $1.17 billion of loans brought current and $322 million previously 60+ days delinquent removed from Fitch’s index that are now 30 days delinquent. Newly issued transactions in May totaled $8.9 billion across 11 deals.
Fitch’s overall U.S. CMBS special servicing rate as of the June remittance was 5.7% ($34.3 billion), compared to May (5.6%; $33.6 billion). The office special servicing rate increased to 14.2% from 13.4%.
- ◦Financing
