US CMBS delinquencies rose in March for the first time since last summer, according to the latest index results from Fitch Ratings.
Late-pays climbed 13 basis points (bps) to 8.43% from 8.30% a month earlier. Helping to drive the increase was the continued underperformance of the $360 million Solana loan, now officially classified as 60-days delinquent.
Prior to March, overall delinquencies had declined every month after hitting a high water mark of 9.01% in July of last year.
Office loan delinquencies, as expected, are continuing their steady upward trajectory following a 31 bp increase to 7.99%. Late-pays on industrial CMBS also rose (37 bps) and are now the second-highest delinquency rate among all property types (behind multifamily) at 10.91%.
In contrast, performance for hotel CMBS is continuing to turn for the better, with delinquencies falling another 40 bps to 10.35%.
Current and prior month delinquency rates for each of the major property types are as follows:
–Multifamily: 12.61% (from 13.30% in February); –Industrial: 10.91% (from 10.54%); –Hotel: 10.35% (from 10.75%); –Office: 7.99% (from 7.68%); –Retail: 7.23% (from 7.15%).
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.