The delinquency rate for commercial mortgage-backed securities (CMBS) inched up by one basis point in August to reach a level of 5.44%, according to new data from Trepp Inc.
But unlike in many previous months when the office sector was responsible for driving up the delinquency rate, in August the main culprit for the uptick was $407.7 million worth of delinquent loans that drove the multifamily delinquency rate’s 67-basis-point spike to 3.30%. This marked the highest the multifamily rate has climbed in more than three years.
The office sector had its share of problems with $1.25 billion worth of newly delinquent office loans, but that was counteracted with $1.55 billion worth of office loans that were delinquent in July but were no longer delinquent in August. As a result, the office delinquency rate decreased 12 basis points to 7.97%.
The retail sector had its headaches with a delinquency rate that rose 7 basis points to 6.21%, while the industrial delinquency rate decreased 14 basis points to 0.50% and the lodging delinquency rate decreased 26 basis points to 5.91%.
Year-over-year, the overall CMBS delinquency rate is up 119 basis points from the 4.25% level of August 2023.
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