Fitch: Large Office Defaults Drive CMBS Delinquency Rate Higher in November

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Fitch Ratings, Chicago, reported that the U.S. commercial mortgage-backed securities delinquency rate increased six basis points in November to 3.25%.

Several large new office delinquencies were partly offset by a surge in new issuance volume during the month, Fitch reported.

New 60-plus day delinquency volume totaled $1.89 billion in November, down from $2.17 billion in October, led by office, multifamily, retail and mixed-use, the report said. Term defaults accounted for 65% of new delinquencies compared to 35% in maturity defaults.

Fitch said resolution volume decreased to $1.19 billion in November from $1.78 billion in October. November resolutions included $701 million of loans brought current and $489 million of loan liquidations.

Special servicing volume for the Fitch-rated U.S. CMBS universe as of the November remittance was mostly steady at 6.2% ($37.6 billion), compared to October (6.2%; $37.2 billion).

The report said office-sector CMBS delinquencies increased from 8.19% in October to 8.71% in November; retail-sector delinquencies dipped from 3.47% to 3.34%; Hotel-sector delinquencies slip from 3.44% to 3.22% and multifamily delinquencies dipped to 1.03% from 1.06% in October.