The delinquency rate for commercial mortgage-backed securities (CMBS) increased from 7.30% in December to January by 17 basis points to 7.47%, according to new data from Trepp Inc. One year ago, the overall CMBS delinquency rate was 6.56%.
“The increase was driven by a net increase in delinquent loans of almost $1.6 billion, primarily driven by the office sector,” said Thomas Taylor, senior manager for research at Trepp. “For the second straight month, three of the five major property types saw increases to their delinquency rates, while two pulled back, although the mix was different in January.”
Taylor added, “The largest rate increase was in office, which rose 103 basis points to an all-time high of 12.34%. The second largest rate increase was multifamily’s, which seesawed back up by 30 basis points in January to 6.94%, following a decrease of similar magnitude of 34 basis points the month prior. The retail rate increased by 12 basis points to 7.04%, still 78 basis points off of its recent peak of 7.82% in March 2025, but the sixth monthly increase since the beginning of 2025.”
On the flip side, Taylor noted the lodging sector’s delinquency rate recorded the largest decline of the month, falling 105 basis points to 5.56%, to its lowest level since March 2024 when the rate was 5.45%. The industrial delinquency rate dropped 18 basis points to 0.62%.
