Research - JANUARY 6, 2015

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Office CMBS to have highest losses among property types

by Reg Clodfelter

Despite the fact that CMBS backed by loans on office buildings had the lowest realized losses to date at 3.6 percent, those securities are expected to have the highest losses among property types going forward at 9.6 percent, according to Standard & Poor’s Rating Services.

CMBS backed by lodging assets, which had been showing troubling signs in late 2014, are projected to have the second-highest losses at 7.7 percent.

Multifamily CMBS, on the other hand, are projected to have the lowest losses moving forward, at 6.6 percent, despite having the highest realized losses to date at 4.0 percent, accord to S&P, and the highest delinquency rate among property types, at 8.83 percent, according to Trepp.

CMBS backed by assets in secondary markets are expected to continue to have higher

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