Feb 10 - Delinquencies for office and retail loans have hit
their highest-ever levels while overall U.S. CMBS delinquencies
fell for the sixth straight month, according to the latest index
results from Fitch Ratings.
CMBS late-pays declined five basis points (bps) in January
to 8.32% from 8.37% a month earlier. The improvement was driven
by multifamily loans, which saw a 165-bp plunge in its rate
month-over-month to 12.77%. The delinquency rates for office and
retail rose to all-time highs of 7.30% and 7.21%, respectively.
The downturn in office and retail performance comes as
multifamily and hotel loans have shown the best performance
rebound over the past 24 months, a trend Fitch expects to see
continue. In fact, the multifamily delinquency rate has fallen
4.63 percentage points from one year ago to 12.77% from 17.40%.
Current and prior month delinquency rates for the major
property types are as follows:
--Multifamily: 12.77% (from 14.42% in December);
--Hotel: 12.21% (from 12.02%);
--Industrial: 10.40% (from 10.25%);
--Office: 7.30% (from 6.84%);
--Retail: 7.21% (from 6.89%).
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
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