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, marking the second consecutive month of increase from 1.85% in May, according to Fitch Ratings’ report. The majority of new delinquencies were observed in the retail and office sectors with more than 81% share combined between them – 46% being retail ($410 million) and 35%, office ($310 million). Maturity defaults accounted for 60%, or $530 million, of total new delinquencies reported last month while resolution volume was at $364 million which is similar to May’s figure but lower than that of June’s new delinquencies amounting up to $887 million . Resolutions included loans brought current (at a value of $218M), liquidations (valued at 63M) as well as previously delinquent loans now 30 days delinquent or current removed from Fitch’s index worth 83M$. The largest monthly increase was seen within the office sector due mainly by a loan on 315 W 36th St., Manhattan valued at 77$ Million