An article from CoStar today asked the question, “Has the CMBS market finally turned the recessionary corner?”
The author notes several optimistic trends as we approach 2011, “when the volume of new deals is projected to more than double from this year.”
The best news of the bunch? The decline in CMBS delinquincies:
CMBS delinquencies dropped 88 basis points (bps) to 7.78% due largely to the resolution of seven loans (totaling $5.2 billion), according to Fitch Ratings. The resolutions included the $4.1 billion Extended Stay America loan, collateralized by a portfolio of 682 hotel properties.
At the same time, only $304 million of hotel-backed loans became newly delinquent. This led to a large drop in hotel delinquencies to 14.14% from 21.31% in September, the largest drop recorded of any CMBS asset type by Fitch Ratings.
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