CMBS Delinquencies Spike Again Across Every Category

office vacant commercial real estate lease

Fitch’s latest look at CMBS delinquencies isn’t particularly comforting:


Fitch  Ratings–NY–5 February 2010: The delinquent status of the Extended
  Stay  America  loan  was  a  large contributor to a 129 basis-point (bp)
  increase  in overall U.S. CMBS delinquencies last month to 6%, according
  to Fitch Ratings in its weekly U.S. CMBS newsletter.

  ‘While  the  Extended  Stay  loan  is  a  significant contributor to the
  increase  in  delinquencies, a steady up-tick in all property types will
  lead to continued increases in the months ahead’, said Managing Director
  Susan  Merrick.   ‘Even  without the classification of the Extended Stay
  loan  as  delinquent, the Index would have increased to 5.10% instead of

  For the fifth month running, each of the five main property types saw an
  increase  in  delinquencies.   Delinquency  rates  for  those properties
  compared to last month are as follows:

  –Office: 3.06% (vs. 2.66%);
  –Hotel: 16.44% (vs. 9.13%);
  –Retail: 4.94% (vs. 4.25%);
  –Multifamily: 8.33% (vs. 7.54%);
  –Industrial: 3.73%. (vs. 3.57%).

  Additional   information  on  Fitch’s  monthly  delinquency  results  is
  available  in  the e-newsletter, titled “U.S. CMBS Market Trends”.  Also
  highlighted  are Fitch’s latest rating actions, links to the most recent
  of  the  78 completed Fitch CMBS Focus Reports and a list of the largest
  loans transferred to the special servicer in the last week.

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