Nov 11 (The following statement was released by the rating agency)
Traditional property types, including retail,
office, multifamily, and industrial, continue to represent the majority of
collateral in Fitch-rated U.S. CMBS, though there has been a steady increase in
the number of non-traditional properties over the last four years, according to
Fitch Ratings in its latest CMBS weekly newsletter.
Manufactured housing communities and self-storage properties in particular have
increased of late.
The contribution of manufactured housing communities (MHC) to Fitch-rated CMBS
deals has grown every year for the last three years. Representing less than 1%
of deals in 2010, the asset class has grown slowly from 2.5% in 2011 to 3.2% in
2012 and 5.9% as of September 2013.
Self-storage assets have also been a growing contributor to deals in 2013 with
just over 4% YTD. While not a traditional property type, these have also
performed well with a less than 1% default rate. That said, Fitch still views
self-storage assets cautiously seeing as many self-storage units are located in
areas with limited barriers to entry.
While not necessarily non-traditional, lodging assets have also grown steadily
over the last three years. Since 2010, when the hotel contribution was under 5%
within Fitch-rated CMBS, the number of hotel assets grew as the market
stabilized, to over 10% in 2011, 13.5% in 2012 and 14.5% YTD 2013.
Additional information is available in Fitch's weekly e-newsletter, 'U.S. CMBS
Market Trends', which also contains recent rating actions and an overview of
newly released CMBS research, including Fitch presales and Focus reports. The
link below enables market participants to sign up to receive future issues of