The delinquency rate for commercial mortgage-backed securities (CMBS) ended 2025 with a four basis points uptick to 7.30%, according to data from Trepp Inc. Year-over-year, the overall CMBS delinquency rate is up 73 basis points from 6.57%.
However, Trepp noted the overall delinquent balance decreased by $264.0 million to $43.5 billion in December while the outstanding balance decreased $7.7 billion to $596.1 billion.
“Three of the five major property types saw increases to their delinquency rates, while two pulled back,” said Thomas Taylor, senior manager for research at Trepp. “The largest rate increase once again was lodging, which rose 44 basis points to 6.61%. The second largest rate increase was again industrial, which ticked up by a relatively large 13 basis points in December to 0.80%, after adding three basis points the month prior. The retail rate increased by 18 basis points to 6.92%, still 90 basis points off of its recent peak in March 2025.”
Thomas added, “The office rate saw the largest retreat, by 37 basis points to 11.31%, marking the second consecutive rate decline but ending this year ahead of the last three Decembers by margins of 30, 549, and 973 basis points, respectively. The multifamily delinquency rate also continued to decline, dropping 34 basis points to 6.64%.”
