On the heels of another rise in US CMBS delinquencies, Fitch rated loans in special servicing rose by an additional 7.4%, according to the rating agency. Following a 54bp increase in Fitch's US CMBS Loan Delinquency Index to 3.86, the balance of specially serviced loans in Fitch-rated transactions increased to US$35bn in September from US$32.6bn in August.

The largest addition is the US$217.4m World Market Center loan in BSCMSI 2005-PRW10. The loan transferred to special servicing due to the borrower's inability to fund operating shortfalls at the 1.1 million square foot Las Vegas furniture show room, due to declining occupancy because of the ongoing economic downturn.

While all property types continue to see performance declines, Fitch expects retail and hotel properties to see the immediate effects of such deterioration.