Fitch Ratings said delinquencies of loans in U.S. commercial mortgage-backed securities rose in August as a record number of problem loans were worked out but five large loans contributed to $3.1 billion in newly soured debt.
CMBS delinquencies have continued to rise this year after spiking in 2009 as commercial property owners got increasingly behind on their mortgages because falling occupancy rates and rents crimped cash flow.
The steep drop in property values has rendered many landlords unable to sell their buildings for enough money to repay the debt they borrowed to buy them.
Fitch said Friday that the overall CMBS delinquency rate rose to 8.48% in August from 8.25% a month earlier.
Five loans greater than $100 million were added to the delinquent roster during the month, including $825.4 million of debt on the so-called Innkeepers portfolio.
Innkeepers USA Trust, a real-estate investment trust that owns more than 70 midmarket hotels, filed for bankruptcy in July as it labored under more than $1 billion in debt.
Fitch said the hotel sector continued to have the highest delinquency rate at 20.8%, up from 18.6% a month earlier.
The office rate remained the lowest, dropping to 5.06% from 5.08%.