Fitch Ratings’ overall U.S. CMBS delinquency rate increased 15 basis points to 3.43% in March from 3.28% in February, driven by a surge in new large-balance office delinquencies that outpaced resolutions. The increase was partially offset by new issuance volume totaling $17.6 billionin February.
Four of the five largest new delinquencies in March were office loans, pushing the office delinquency rate up 69 bps to 8.76%. That represents the second-highest level on record, trailing only the 8.83% peak set in September 2012, according to Fitch.
During the month, retail, hotel and mixed-use delinquencies all increased, albeit by smaller percentages than office and with lower delinquency rates overall. The second-highest delinquency rate after office was in retail at 3.77%, up 20 bps from February.
Fitch’s delinquency index currently includes 761 loans totaling $21.8 billion that have been reported at least 60 days delinquent, foreclosure, REO or non-performing matured. Synthetic CMBS transactions are excluded from the index.
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