Fitch headquarters in Lower Manhattan Fitch sees a host of challenges for the CMBS market in 2016.

NEW YORK CITY—2016 may mark the end of a five-year streak of declines in CMBS loan defaults, says Fitch Ratings. The slight uptick in new defaults this year is a byproduct of the current credit cycle maturing.

It was thanks largely to improving real estate fundamentals that 2015 saw the CMBS annual default drop to 0.4%, its lowest since 2007. The 181 loans that defaulted last year represented a 34% decline from 2014’s tally, and the ’15 total was more than 10 times lower than the peak seen in 2010.

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Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.

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