The delinquency rate for commercial mortgage-backed securities (CMBS) rose by 8 basis points to 5.43% in July, with the office sector accounting for almost two-thirds of the newly delinquent loans in July.
According to new data from Trepp Inc., the office delinquency rate soared above 8% for the first time since last November, when the rate was at 8.58%.
“About $1.88 billion in office loans became newly delinquent in July, which was offset by just shy of $600 million in office loans that were 30-plus days delinquent in June but were no longer delinquent in July,” said Emily Yue, research associate at Trepp.
Two property sectors saw a decline in the delinquency rate: retail with a 28 basis points decline to 6.14%, and lodging with a 15 basis points uptick to 6.17%. On the flip side, the industrial delinquency rate increased 2 basis points to 0.64% and the multifamily delinquency rate increased 27 basis points to 2.63%.
Year-over-year, the overall CMBS delinquency rate is up 102 basis points. The all-time high was 10.34% in July 2012, slightly above the Covid-19 high of 10.32% in June 2020.
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