Office Loans Jacking Up CMBS Defaults

The CMBS cumulative default rate for fixed-rate deals increased to 12.96% in the first quarter, a 25 basis point rise from year-end 2011, according to Fitch Ratings.

Newly defaulted loans in the first quarter totaled $ 1.7 billion (155 loans). And that pace accelerated in April, according to Trepp LLC.

Office loans, which led defaults in 2011, continue to lead defaults in the first quarter with 49% by balance (48 loans). Fitch Ratings expects…
National Commercial Real Estate News From CoStar Group