Delinquencies of new commercial mortgage-backed securities finished January at a post-recession low, according to Fitch Ratings.
New CMBS late payments totaled $274 million in January, down 51% from previous month. The peak occurred five years ago, at $6.6 billion, the New York-based ratings agency said.
The overall delinquency rate was 4.72%, up 10 basis points from December. This increase was due to Fitch updating the methodology it uses in calculating its late-pay rate, which now excludes wireless tower, outdoor advertising and other nontraditional transactions.
Even though new CMBS delinquencies declined, the overall delinquency rate remained tempered by the inventory of real estate owned assets awaiting disposition. Fitch said REO assets at the end of January accounted for nearly two-thirds of total outstanding delinquencies.
Hotels had the highest percentage of delinquencies in January, at 6.2%. Other notable delinquency rates through January included retail at 5.4%, multifamily was 5.2%, industrial and office both were 5%, and mixed-use was 2.9%.