Fitch: CMBS Overdues Dip

Delinquencies on mortgages supporting commercial mortgage-backed securities fell 1 basis point in March to 0.33%, but the recovery in the office sector may be slowing, according to a Fitch Ratings loan delinquency index.Office properties were the only major property type whose loans had a higher delinquent dollar balance as of March 31, said Patty Bach, a Fitch senior director. Fitch also cited a report by Torto Wheaton Research indicating that the U.S. office vacancy rate rose 10 basis points in the first quarter, to 12.6%. "While a 10-basis-point movement is not cause for alarm, it may indicate the recovery the office sector was enjoying is slowing, especially in suburban markets," Ms. Bach said. Fitch can be found online at http://www.fitchratings.com.