US CMBS delinquency rate hits 6%, and is headed higher
The delinquent status of the Extended Stay America loan was a large contributor to a 129 basis-point increase in overall U.S. CMBS delinquencies last month to 6%, according to Fitch Ratings.
‘While the Extended Stay loan is a significant contributor to the increase in delinquencies, a steady up-tick in all property types will lead to continued increases in the months ahead’, said Managing Director Susan Merrick. ‘Even without the classification of the Extended Stay loan as delinquent, the Index would have increased to 5.10% instead of 6%.’
For the fifth month running, each of the five main property types saw an increase in delinquencies.
Delinquency rates for those properties compared to last month are as follows:
–Office: 3.06% (vs. 2.66%); –Hotel: 16.44% (vs. 9.13%); –Retail: 4.94% (vs. 4.25%); –Multifamily: 8.33% (vs. 7.54%); –Industrial: 3.73%. (vs. 3.57%).
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