Fitch: U.S. CMBS Delinquencies Fall despite Lagging Retail
Loan delinquencies fell six basis points (bps) in September to 4.46% from 4.52% a month earlier. The dollar balance of late-pays fell \\$87 million to \\$16.8 billion from \\$16.9 billion in August.
Resolutions of \\$688 million in September edged out new delinquencies of \\$624 million. Meanwhile, Fitch-rated new issuance of \\$8.7 billion in August (10 transactions) exceeded \\$5.3 billion in portfolio runoff, causing an increase in the index denominator.
The overall delinquency rate has fallen 31 bps over the past 12 months led by hotel and multifamily improvements. However, retail is the lone laggard, this despite healthy retail new issuance.
Current and previous delinquency rates by property type are as follows:
--Retail: 5.58% (from 5.48% in August);
--Office: 4.95% (from 5.04%);
--Hotel: 4.64% (from 5.27%);
--Multifamily: 4.47% (from 4.55%);
--Industrial: 4.35% (from 4.90%);
--Mixed Use: 4.17% (from 3.58%);
--Other: 0.96% (from 1.04%).
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