CMBS Loan Defaults Decline in Q3
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The $163.8-million loan on Jericho Plaza was the largest to default during Q3.
NEW YORK CITY—Fewer defaults and strong new issuance levels drove a decline in CMBS cumulative loan default rate during the third quarter, Fitch Ratings said Friday. The default rate ticked downward to 13.2% from 13.3% at the end of Q2.
New defaults were off sharply from the year-ago period in terms of both number of loans and dollar volume. Q3’s total of Fitch-rated loans going into default was 38 loans totaling $779.1 million, compared to dollar volume of $1.1 billion from 77 defaults in Q3 2014.
More than half the new defaults by dollar volume were in office CMBS, followed by retail at 31.8%. Fitch says the defaults in office and retail were generally due to struggling occupancy levels and declining rents. Three industrial, three hotel and four multifamily loans defaulted in Q3 representing 7.8%, 4.3% and 3%, respectively, of total defaults by dollar volume…
