Fitch: CMBS Delinquencies Fall To Lowest Level Since 2010

According to the latest data from Fitch Ratings, delinquencies on U.S. commercial mortgage-backed securities (CMBS) fell last month to 8.17% from 8.29% in October, representing the lowest level since November 2010 and the sixth consecutive monthly decrease.

In November, loan resolutions totaling $1.5 billion outpaced $1.3 billion in additions to Fitch's index. Also, $6.6 billion in Fitch-rated deals closed in November, offsetting $4.6 billion in portfolio runoff. New deals contributed nearly $3 billion in new multifamily loans to Fitch's index, as well as $1.4 billion in lodging properties, $752 million in offices and $630 million in retail loans.

In November, multifamily, office and retail saw their delinquency rates improve, while hotel and industrial worsened moderately. Notably, no loans over $100 million transferred into or out of the index last month – the first time this has occurred in over a year, the company says.

Current and prior-month delinquency rates for each of the major property types are as follows: multifamily, 9.92% (from 10.45% in October); hotel, 9.83% (from 9.58%); industrial, 8.88% (from 8.76%); office, 8.63% (from 8.72%); and retail, 7.28% (from 7.35%)

Fitch Ratings' delinquency index includes 2,170 loans totaling $32 billion that are currently at least 60 days delinquent, in foreclosure or real estate owned, or considered non-performing matured out of the outstanding rated universe of approximately 32,000 loans comprising $392.1 billion. The index excludes loans that are 30 to 59 days delinquent, which totaled $2.1 billion in November (compared with $1.7 billion in October).


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