**CMBS Loan Losses Spike in January**
CMBS loan loss volume saw a significant increase in January, with $246.9 million across 14 loans resolved for a total loss of $167.0 million. This resulted in an average loss severity of 67.63%. According to Trepp, this marked a substantial rise from December, when losses amounted to just $71.8 million. It was also the highest monthly loan loss total since last September.
The 12-month moving average of disposed loan balances declined to $204.4 million in January, down from $252.8 million in December. Meanwhile, the 12-month moving average loss severity edged up slightly to 62.65%, compared to 62.38% in the previous month.
While the overall disposed loan total remained below the past 12-month moving average, the average loss and loss severity exceeded previous averages. Over the past year, the highest recorded monthly loss severity was in April at 81.47%, while the lowest occurred in July at 51.3%.
*Pictured: Kitsap Mall in Silverdale, WA, the largest CMBS loan to be resolved at a loss in January.*
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Steve Griffin is based in sunny Palm Harbor, Florida. He’s an accountant by profession and the owner of GRIFFIN Tax (www.griffintax.com) and REVVED Up Accounting (www.revvedupaccounting.com). In addition, Steve founded Madison Avenue Technology (www.madisonave.tech). With a strong passion for commercial real estate, he’s also dedicated to keeping you up to date with the latest industry news.
