US delinquency and default rates for loans sold as commercial mortgage-backed securities probably will continue to increase this year amid rising office, retail and apartment vacancies, research firm Reis said.

Delinquency and default rates for securitized loans on office, retail, industrial, apartment and hotel properties are likely to rise above 6 percent by the end of the year from a weighted average of 1.76% in the first quarter, said the New York-based provider of property data. Those rates climbed from 1.14% in the fourth quarter and 0.8% in the third quarter. CMBS loans represent about 21% of the $3.5tr commercial real-estate debt market, Reis said.

bloomberg.com