NEW YORK, NY - CMBS delinquencies fell sharply again last month as more CWCapital bulk asset sales were booked and delinquency rates for the major property types converged, according to the latest index results from Fitch Ratings.
CMBS late-pays fell 27 basis points (bps) in March to 5.16% from 5.43% a month earlier. Delinquency rates for the major property types differ by only 1.59 percentage points, a stark contrast to over three years ago, when the gap between property type delinquency rates peaked at nearly 16 percentage points. Hotel late-pays topped 21%, while office stood close to its current rate of about 5% in September 2010.
CWCapital bulk asset sales continued to play a lead role in driving the overall delinquency rate lower especially for office. Approximately $800 million of CWCapital bulk asset sales in Fitch-rated deals were reported in March, with close to $700 million backed by office properties.
In total, resolutions of $1.8 billion in March outpaced new additions to the index of $611 million. Current and previous delinquency rates are as follows:
Industrial: 6.74% (from 7.38% in February);
Multifamily: 6.03% (from 6.07%);
Office: 5.36% (from 6.05%);
Hotel: 5.35% (from 5.42%);
Retail: 5.15% (from 5.15%).
Fitch Group is a global leader in financial information services with operations in more than 30 countries. Fitch Group is comprised of: Fitch Ratings, a global leader in credit ratings and research; Fitch Solutions, a leading provider of credit market data, analytical tools and risk services.
Source: Fitch Ratings / #Housing #Economy