Commercial mortgage backed securities grew in profitability for the ninth straight year in 2019, according to a new report from Fitch Ratings, but that streak is bound to come to an end in 2020 because of the widespread impacts of the coronavirus crisis.

The property-level net operating income for loans securitized in Fitch-ranked CMBS grew an average of 2.0% in the last calendar year, following growth rates of 1.9% in 2018 and 2.0% in 2017. Yet ominous signs were already on the horizon for the hotel sector, where NOI began a decline in 2019, and retail, where growth was close to zero.

Hotels saw their NOI dip by 3.1% last year, following a 0.2% decline in 2018. But they were an outlier in a larger universe that saw 60% of properties that reported financials in both 2018 and 2019 increase NOI.

Recommended For You

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM Digital Member, you’ll receive:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dan Packel

Dan Packel is an editor on the Business of Law desk at ALM. He writes a weekly briefing for Law.com, "The Law Firm Disrupted," on change and innovation in the legal marketplace. He is based in Philadelphia. Contact him at [email protected]. On Twitter at @packeld