CMBS Delinquencies Increase for Two Months: Retail and Office Lead the Way

The U.S. CMBS delinquency rate rose six basis points to 1.91% in June, two months after it had been at 1.85%. Most of the new delinquencies occurred in the retail and office sectors, according to Fitch Ratings’ report on the matter.
New 60-day-plus delinquencies totaled $887 million for June, which was lower than May’s figure of $1.1 billion; however resolution volume also decreased from May with only $364 million being reported for June’s figures instead of last month’s total amounting to over a billion dollars as well..
Retail loans accounted for 46% ($410 million) while office loans made up 35% ($310 million). The largest monthly increase in new delinquencies came from 315 W 36th St., Manhattan with its loan totaling up to 77$million dollars within that sector alone . Maturity defaults were responsible for 60%, or 530$million worth of new delinquent payments during this period as well . Resolutions included 218$million worth of Fitch rated loans brought current , 63$millions liquidated and 83 millions previously overdue now 30 days delinquent or current removed from Fitch’s index altogether .