The cumulative default rate for securitized, fixed-rate commercial mortgages rose to 10.6% at the end of the third quarter – a 112 basis-point increase from the end of the second quarter, Fitch Ratings reports in its weekly U.S. CMBS Market Trends newsletter.
‘Loans continue to default at a record pace, with large loans driving the trend,’ Fitch says.
By property type, the hotel and office sectors contributed most to third-quarter defaults. The three largest defaults in the quarter included the Innkeepers Portfolio, a $285 million hotel loan; One Alliance Center, a $165 million office loan; and Highwoods Portfolio, a $160 million office loan.
SOURCE: Fitch Ratings