Fitch Ratings said specially serviced CMBS loans have been increasing since last quarter and are probably going to continue on this trend.
Fitch’s daily special, which tracks loan transfers of over $20 million, has reported rises recently. The rating agency reported 15 loans worth over $20 million moving to special servicing thus far this year.
A total of 210 loans over $20 million were transferred to the special servicer in 2011, which decreased from 312 in 2010.
According to Fitch, the number of loans that transferred by quarter were as follows: 1Q11had 329 loans with 57 over $20 million; 2Q11 had 292 loans with 46 over $20 million; 3Q11 had 299loans with 42 over $20 million and 4Q11 had 340 loans with 65 over $20 million.
Office and retail loans led the new transfers in 2011 with 349 and 379 loans respectively. As leases roll and added retailers consolidate space, the rating agency expects office and retail to make up a bigger percentage of newer transfers.
Conversely, hotel loans had the least amount of new transfers at 104 loans. This represents a continued rebound for hotel loans after some of the worst years.
"Office and retail loans will continue a pattern established late last year and remain the most vulnerable to increased CMBS special servicing transfers in 2012, " Mary MacNeill, managing director at Fitch. "The recent transfer of the Kerzner portfolio into special servicing will result in a near-term spike for hotel loans, though the sector by and large will continue to perform much better than the last two years."
