Office loan delinquencies are still trending upward and overall CMBS late-pays are still decreasing. These findings are based on the latest index results from Fitch Ratings.
CMBS delinquencies dropped nine basis points last month to 8.39% from 8.48% in July. Meanwhile, in August, roughly $2 billion loans were resolved and taken out from the index versus $1.7 billion of new delinquencies added to the index.
The biggest addition to the rating agency’s index was the $678 million Skyline Office Portfolio in Falls Church, VA. This loan pushed office delinquencies upwards by 29 basis points. A possibility of a loan modification is now being talked about.
Retail delinquencies rose three basis points. The biggest retail loans becoming newly delinquent this month are the $71.4 million and $18.5 million cross-collateralized and cross-defaulted Algonquin Commons Phase I and Phase II loans, which are backed by two retail properties totaling 564,790 square feet in Algonquin, IL.
The latest delinquencies by property type are the following: hotel at 10.82% (from 11.46% in July); multifamily at 10.18% (from 10.89%); industrial at 8.54% (from 8.68%); office at 8.72% (from 8.43%); and retail at 7.43% (from 7.40%).
