While Fitch's February CMBS delinquency data showed relative stability overall compared to the previous month and a year ago, there were some variations in sub-markets such as a high level of 60-day late payments in Atlanta office loans.
“A staggering 37% of all Atlanta office loans in Fitch-rated deals are now considered delinquent,” Mary MacNeill, managing director at Fitch, told this publication.
Also, she added, “Another $314 million (10%) of Fitch's Atlanta office universe were already 30-days delinquent.”
Fitch's report shows a large hotel loan brought current improved overall CMBS delinquencies in February by two basis points compared to January. Hotel delinquencies dropped to 10.75% in February from 12.21% in January and overall CMBS delinquencies fell to 8.3% from 8.32% during the same time period. Last February, overall CMBS had a 8.76% delinquency rate and hotels had a 14.33% delinquency rate.
However, with Atlanta's woes adding a large office loan to the 60-days delinquent bucket last month, office delinquencies in February increased to 7.68% from 7.3% in January. A year ago in February, office delinquencies were just 5.8%.
Also during February, multifamily delinquencies rose to 13.3% from a revised 13.04% in January and industrial delinquencies increased to 10.54% from 10.4% during the same time period. Last February, multifamily had a higher 17.58% delinquency rate and industrial had a lower 9.4% delinquency rate.
Other than hotels, only one other property type evinced month-to-month improvement. Retail delinquencies dropped to 7.15% from 7.21%. A year ago in February, retail delinquencies were lower at 7.04%.
