**Delinquencies Rise in June for Fitch-Rated CMBS**
Fitch Ratings has reported a slight increase in the overall U.S. Commercial Mortgage-Backed Securities (CMBS) delinquency rate for June. The rate rose by two basis points to 3.10%, up from 3.08% in May. The increase was largely attributed to a rise in office sector delinquencies, although this was partially offset by ongoing loan resolutions and robust new issuance activity.
New 60+ day delinquencies on Fitch-rated CMBS climbed to $2.01 billion in June, up from $1.37 billion in May. Office-related loans made up the majority of the new delinquencies at 53%, followed by hotel loans at 14% and mixed-use properties at 13%. Of the new delinquencies, 63% were due to term defaults, while the remaining 37% resulted from maturity defaults.
Resolution activity also picked up, with total volume reaching $1.50 billion in June, compared to $848 million in May. This included $1.17 billion in loans that were brought current and $322 million previously categorized as 60+ days delinquent, which have now been reclassified as 30 days delinquent and removed from Fitch’s index. Additionally, new CMBS issuance in May totaled $8.9 billion across 11 transactions.
As of the June remittance, Fitch reported that the overall U.S. CMBS special servicing rate had increased to 5.7% ($34.3 billion), up slightly from 5.6% ($33.6 billion) in May. Notably, the office sector special servicing rate rose from 13.4% to 14.2%.
These figures reflect ongoing challenges within the commercial real estate market, particularly within the office sector, even amidst some signs of stabilization and continued investor interest.
