CMBS (Commercial Mortgage Backed Securities) Delinquencies Spike Again Across Every Category

The Business Insider ^ | 2-5-2010 | Joe Weisenthal

[blam]

CMBS Delinquencies Spike Again Across Every Category

Joe Weisenthal
Feb. 5, 2010, 11:21 AM

Fitch's latest look at CMBS delinquencies isn't particularly comforting:

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Fitch Ratings–NY–5 February 2010: The delinquent status of the Extended Stay America loan was a large contributor to a 129 basis-point (bp) increase in overall U.S. CMBS delinquencies last month to 6%, according to Fitch Ratings in its weekly U.S. CMBS newsletter.

‘While the Extended Stay loan is a significant contributor to the increase in delinquencies, a steady up-tick in all property types will lead to continued increases in the months ahead’, said Managing Director Susan Merrick. ‘Even without the classification of the Extended Stay loan as delinquent, the Index would have increased to 5.10% instead of 6%.’

For the fifth month running, each of the five main property types saw an increase in delinquencies. Delinquency rates for those properties compared to last month are as follows:

--Office: 3.06% (vs. 2.66%);
--Hotel: 16.44% (vs. 9.13%);
--Retail: 4.94% (vs. 4.25%);
--Multifamily: 8.33% (vs. 7.54%);
--Industrial: 3.73%. (vs. 3.57%).

[snip]

[Tarpon]

Just at a bank, he said commercial mortgages are going south due to bad Christmas selling season.

[Psycho_Bunny]

I hadn’t been in Seattle’s Westlake Center since November. When I walked in yesterday, 5 stores were gone. I couldn’t believe it.

[RyanTCH]

The thing that sticks out to me is the Multi-family rise in %, that tells me even the rental market for homes is doom and gloom. No bueno.

[Tarpon]

The stores are dropping like flies around here in SWFL as well. I bet some shopping centers go into bankruptcy soon, since they have few tenants left in the whole strip mall center.

The only thing holding them up now is the snow bunnies have showed because it’s so cold up north.