Office Drives CMBS Late-Pays Higher In April

May 9, 2017

Office Drives CMBS Late-Pays Higher In April

NEW YORK CITY—The largest new delinquency rate and the largest loan resolution for the month both occurred in the office sector, Fitch Ratings said Monday.

May 8, 2017 | by PAUL BUBNY | GlobeSt.com

NEW YORK CITY—A 44-basis point increase increase in office late-pays helped push US CMBS delinquencies higher in April, Fitch Ratings said Monday. Office has now surpassed retail twice so far in 2017, according to the ratings agency.

For CMBS generally, the month-to-month increase was nine bps, finishing April at 3.50%. New delinquencies of $819 million exceeded total resolutions of $544 million. In addition, portfolio runoff of $7.7 billion exceeded Fitch-rated new issuance volume of $6.7 billion from seven transactions in March, which led to a decrease in the overall index denominator for CMBS delinquencies.

Both the largest new delinquency for the month and the largest resolution occurred within the office sector, according to Fitch. The largest new delinquency, the $85.1-million Gateway I loan, secured by a 514,956-square-foot office property in Newark, NJ, defaulted at its maturity last month.

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Ramón A. Rivera-Ramos
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