According to a recent report from Fitch, the percentage of commercial mortgage-backed securities (CMBS) loan balances that are delinquent at least 60 days or in foreclosure reached 8.76 percent, an increase of 17 basis points (0.17 percent) since January’s rate and 247 basis points (2.47 percent) over a year earlier. Fitch’s database includes approximately 37,000 loans totaling $416.9 billion.

The following chart details CMBS delinquencies by property sector as of February 28th, January 31st (one month prior), and February 28, 2010 (one year earlier):

Property Sector

February 2011

January 2011

February 2010

Multifamily

17.58%

17.40%

8.97%

Hospitality

14.33%

14.43%

16.61%

Industrial

9.40%

8.53%

4.16%

Retail

7.04%

6.88%

5.09%

Office

5.85%

5.50%

3.50%

Overall

8.76%

8.59%

6.29%

Key takeaway: while we expect this problem to be with us for the immediate future, delinquencies will continue to increase (except hospitality), albeit at a slower rate, hopefully indicating an end is in sight.