NEW YORK--(BUSINESS WIRE)--Net operating income (NOI) for properties within Fitch-rated U.S. CMBS multiborrower deals increased 3% year-over-year in 2015, according to recent findings by Fitch Ratings. This compares to 3.2% of NOI growth in 2014, 2.5% in 2013 and 2.5% in 2012. Year-over-year NOI increases for the major property types from 2014 to 2015 were as follows:
--Multifamily: 5.4% (compared to 3.8% from 2013 to 2014);
--Hotel: 5.1% (8.1%);
--Industrial: 2.8% (1.4%);
--Retail: 1.5% (2.1%);
--Office: 1.1% (1.5%).
Multifamily NOI growth was driven by strong performance in Texas (574 loans totaling $7.34 billion), California (464 loans; $6.64 billion), and Florida (261 loans; $3.81 billion), which reported NOI gains of 6.4%, 8.2%, and 7.6%, respectively. North Dakota reported the largest double digit NOI decline, at over 18%, largely due to the impact of low oil prices.
Hotel properties also led NOI growth, though they have done so at a slower pace compared to last year reflective of the sector reaching its peak in many regional markets. NOI improved by 13% for California (118 loans totaling $2.26 billion) and by nearly 8% for Florida (77 loans; $1.44 billion); however, New York (66 loans; $1.50 billion) and Texas (94 loans; $1.41 billion) reported NOI declines of nearly 6% and 7%, respectively.
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