In May 2024, Fitch Ratings reported a rise in the overall delinquency rate for U.S. CMBS to 2.42%, an increase of nine basis points from the previous month. This was primarily due to maturity defaults on several large regional mall and office loans. The retail and office delinquency rates saw increases of 32 bps and 26 bps, respectively.
During this time period, new delinquencies over a span of more than sixty days amounted to $1.32 billion compared with $1.49 billion in April, according to Fitch’s data analysis which showed that office loans accounted for the largest share (44%; $588 million) followed by retail (41%, $536 million) and hotel (11%, $139 million). Maturity defaults made up most of these new delinquencies at 77% ($1.02 billion), while term defaults represented only around one-fourth at ($305 million).
Fitch also noted an increase in resolution volume from April’s figure as it rose from about half-a-billion dollars ($569 million) last month up by almost two hundred millions dollars during May reaching approximately three-quarters-of-a-billion-dollars worth or resolutions.
Trepp had different findings though as they reported that CMBS delinquency declined slightly by ten basis points ending May with a rate standing at just below five percent – specifically: four-point-ninety-seven-percent! This improvement was largely driven through roughly two billions’ worth or resolutions related exclusively towards offices within their respective portfolios during this same thirty-one-day-period; however year-over-year comparisons show higher numbers when comparing against figures published back then showing lower levels – specifically: three-point-twenty-three-percent!
