Hotel Tops CMBS Late Pays By Property Type

November's delinquency rate for commercial mortgage-backed securities (CMBS) reached 8.81% – a 0.31% rise over October's rate, reports Investcap Advisors LLC, a Waltham, Mass.-based provider of surveillance data on commercial loan and real estate performance. Delinquency rates had fallen dramatically one month earlier.

‘October's lower activity was driven primarily by a resolution to the large Extended Stay portfolio, which we consider an anomaly,’ states Scott Barrie, managing director of Investcap Advisors.

Fewer commercial loans were transferred to special servicers in November, culminating in a 16.7 % decrease over prior-month activity.

The rise of over $2 billion in overall delinquencies continues to be driven by high concentrations in the multifamily, office and retail sectors, Investcap Advisors says. The 12-month CMBS delinquency ratios are again led by the hotel sector, at 15.2% and multifamily, at 14.1%. The remaining core property-type delinquency rates are 7.5% for retail, 6.8% for office and 6.2% for industrial, according to the firm's data.

"We can expect to see continued volatility in the data in the coming months as future economic conditions remain uncertain," says Barrie.

The Investcap Advisors CMBS delinquency report is based on data covering more than $695 billion in CMBS loans.

SOURCE: Investcap Advisors LLC


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