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| MHC and Lodging as a Percent of Collateral |
Summary: There has been an increase in non-tradition (those outside retail, office, multifamily, and industrial) Fitch-rated US CMBS issues, with more manufactured housing communities (MHC) and self-storage properties. Lodging assets, too, have also grown over the last three years.
New York --(Fitch Rating Agency)--
Traditional property types, including retail, office, multifamily, and industrial, continue to represent the majority of collateral in Fitch-rated U.S. CMBS, though there has been a steady increase in the number of non-traditional properties over the last four years, according to Fitch Ratings in its latest CMBS weekly newsletter.
Manufactured housing communities and self-storage properties in particular have increased of late.
The contribution of manufactured housing communities (MHC) to Fitch-rated CMBS deals has grown every year for the last three years. Representing less than 1% of deals in 2010, the asset class has grown slowly from 2.5% in 2011 to 3.2% in 2012 and 5.9% as of September 2013.
Self-storage assets have also been a growing contributor to deals in 2013 with just over 4% YTD. While not a traditional property type, these have also performed well with a less than 1% default rate. That said, Fitch still views self-storage assets cautiously seeing as many self-storage units are located in areas with limited barriers to entry.
While not necessarily non-traditional, lodging assets have also grown steadily over the last three years. Since 2010, when the hotel contribution was under 5% within Fitch-rated CMBS, the number of hotel assets grew as the market stabilized, to over 10% in 2011, 13.5% in 2012 and 14.5% YTD 2013.
New York --(Fitch Rating Agency)--
Traditional property types, including retail, office, multifamily, and industrial, continue to represent the majority of collateral in Fitch-rated U.S. CMBS, though there has been a steady increase in the number of non-traditional properties over the last four years, according to Fitch Ratings in its latest CMBS weekly newsletter.
Manufactured housing communities and self-storage properties in particular have increased of late.
The contribution of manufactured housing communities (MHC) to Fitch-rated CMBS deals has grown every year for the last three years. Representing less than 1% of deals in 2010, the asset class has grown slowly from 2.5% in 2011 to 3.2% in 2012 and 5.9% as of September 2013.
Self-storage assets have also been a growing contributor to deals in 2013 with just over 4% YTD. While not a traditional property type, these have also performed well with a less than 1% default rate. That said, Fitch still views self-storage assets cautiously seeing as many self-storage units are located in areas with limited barriers to entry.
While not necessarily non-traditional, lodging assets have also grown steadily over the last three years. Since 2010, when the hotel contribution was under 5% within Fitch-rated CMBS, the number of hotel assets grew as the market stabilized, to over 10% in 2011, 13.5% in 2012 and 14.5% YTD 2013.
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