The biggest new delinquency and the largest resolution in June both occurred in the office sector, with the $265-million, interest-only 400 Atlantic Street loan, secured by a 527,424-square-foot office property in Stamford, CT, defaulting at its June 2017 maturity date. The month's largest resolution, the $108-million Omni Marathon Reckson loan on a 660,223-square-foot office property in Uniondale, NY, was resolved with a small 1% loss for special servicing fees. Overall, for the month of June, new office delinquencies totaling $494 million were nearly double the $250 million of resolutions, Fitch says.

However, the 33-bp increase in office delinquencies was lower than the 36-bp increase for retail—which, like office, ended the month with a 6.23% delinquency rate—and the 43-bp rise in late pays for industrial CMBS to 5.17%. With the exception of mixed-use, all property sectors covered by Fitch saw delinquencies rise during June. Multifamily's increase was the smallest at six bps, and the sector remains the only one with delinquencies below 1%.

Halfway through the current year, loan delinquencies remain considerably below Fitch's earlier estimate of between 5.25% and 5.75%. The ratings agency attributes this better-than-expected showing to strong repayment activity of maturing loans during the first six months of the year; many of these loans were previously identified as highly leveraged and would face difficulty refinancing.

With only $20 billion left to refinance in '17 and new issuance still maintaining healthy volume, Fitch has lowered its year-end forecast to between 4.25% and 4.50%. Maturity defaults are expected to continue to contribute to the majority of any future delinquency rate increases.