2025 Opens With Lower CMBS Delinquency Rate, Fitch Finds

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The overall U.S. commercial mortgage-backed securities delinquency rate decreased by three basis in January to 2.95%, according to Fitch Ratings, New York.

Fitch largely attributed the improvement to a 44-basis point decline in the office delinquency rate to 6.74%. “Despite the significant volume of office and mixed-use new delinquencies, they were offset by a slightly higher volume of office and retail resolutions,” the ratings firm said in a non-rating action commentary last week.

New 60-plus day delinquency volume increased to $2.31 billion in January from $2.08 billion in December. Office loans accounted for the largest share of new delinquencies at 40%, or $928 million, followed by mixed-use (35%, $802 million), hotel (9%, $201 million) and retail (8%, $193 million), the report said. Maturity defaults accounted for 75% ($1.74 billion) of new delinquencies, while term defaults represented 25% ($573 million).

Fitch noted resolution volume increased “substantially” to $2.36 billion in January from $586 million in December. “Office and retail loans contributed $1.38 billion and $509 million, respectively, to the resolution total. Total January resolutions included $1.84 billion of loans brought current, $388 million of loan liquidations and $133 million of loans previously 60-plus days delinquent removed from Fitch’s index that are now 30 days delinquent,” the report said.

The volume of 30-day delinquencies increased to $2.55 billion in January from $1.57 billion in December, resulting in the 30-day delinquency rate increasing to 0.44% from 0.27%. Office loans accounted for the largest share, representing 43% of 30-day delinquencies ($1.01 billion) followed by retail loans (18%; $471 million).

Special servicing volume for the Fitch-rated U.S. CMBS universe as of the January remittance increased to 5.4% ($31.0 billion) from 5.3% ($30.5 billion) in December, the report said. The special servicing rate for office loans increased to 12.3% from 11.9% in December.