Dec 07 - A surge of new issuance last month helped drive U.S. CMBS delinquencies down for a sixth straight month to its lowest level in two years, according to the latest index results from Fitch Ratings.
CMBS late-pays fell 12 basis points (bps) last month to 8.17% from 8.29% in October. This marks the rate’s lowest level since November 2010, when it stood at 7.96% of the then outstanding Fitch-rated universe of $430 billion.
In November, resolutions of $1.5 billion outpaced additions to the index of $1.3 billion. In addition, $6.6 billion in Fitch-rated deals closed in November, more than offsetting $4.6 billion in portfolio runoff. Last month also marked the highest month for Fitch-rated issuance in five years
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%)
--Retail: 7.28% (from 7.35%)