CMBS conduit exposure to manufactured housing communities and self-storage properties, assets that are considered non-traditional, has increased in 2013 vintage deals.

CMBS conduit exposure to self-storage has increased this year to 4 % as of Sept. compared to the 2% representation the properties had overall in deals rated by Standard & Poor’s, the rating agency said in a report today.

Similarly,exposure to manufactured housing communities in conduit CMBS deal has increased to 5.9% as of Sept. from less than 1% in 2010, according to a Fitch Ratings report this week.  

On the self-storage side, Fitch analysts noted that the assets have also performed in line with more traditional properties types such as retail, office, multifamily, and industrial, with less than a 1% default rate. The rating agency did not cite a default figure for manufactured housing communities.

The increase in self-storage properties in deals today coincides with a rise in the development of self-storage facilities.  New supply will increase to about 16 to 17 million sq. ft. this year from 9 million last year, according on figures reported by Macquarie Securities.

There is an increase demand for the asset class “due to improving fundamentals and relatively high investment returns,” S&P analysts said in a report today.


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