CMBS Delinquencies Improve, But Office Sector Shows Signs Of Trouble

Delinquencies in the commercial mortgage-backed securities (CMBS) space fell for a fourth consecutive month in November, dropping 15 basis points (bps) to 8.41%, Fitch Ratings reports in its weekly U.S. CMBS Market Trends newsletter.

Despite the improvement, Fitch warns that performance in the office sector is tumbling, with office loans making up more than half of the new delinquencies reported in November. The $1.8 billion in loans that became newly delinquent in November were more than offset by the $2.2 billion in resolutions.

Of the major CMBS property types, office loans experienced the biggest percentage gains in delinquencies, rising 27 bps in November. Since November 2010, office loan delinquencies have jumped 93 bps to 6.56%.

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