The ongoing struggles of office loans led to a slight increase in U.S. CMBS delinquencies and the first one since May of last year, according to the latest index results from Fitch Ratings.
While office loans continue their struggles, delinquency rates for all other major property types improved in March.
After falling to a three-year low, CMBS late-pays rose two basis points (bps) in March to 7.63% from 7.61% a month earlier. This is the first time in 10 months that overall delinquencies have risen. CMBS loan resolutions edged out new additions to the index, but a drop in new issuance volume failed to keep pace with the runoff, thus causing the delinquency rate to rise. That said, the increase may be short-lived.
For details, see Office Woes Lead to Uptick in U.S. CMBS Delinquencies ($)