Office Defaults in NYC Cause Uptick in CMBS Delinquencies

The double-digit rise in commercial mortgage-backed securities (CMBS) delinquencies for September was mainly due to two office building loan defaults in Manhattan. New 60-day-plus delinquencies rose by $1.69 billion from August to September, and over half the new defaults from August to September were maturity defaults. Year-over-year CMBS delinquency rates for September increased by 21 basis points, and year-over-year office loan delinquency rates are up 227 basis points. In September, 5.9 percent of CMBS loans were in special servicing, and experts expect more loans to transition into special servicing over the course of the year.

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