The delinquency rate for commercial mortgage-backed securities (CMBS) decreased by 33 points in February to 7.14%, according to a new data report from Trepp Inc. One year ago, the delinquency rate was 6.30%.
“The decline came thanks to a net decrease in overall delinquent loan balance, which was primarily driven by the execution of modifications and extensions of five large, matured office loans and four large mall loans,” said Thomas Taylor, senior manager for research at Trepp. “The office extensions ranged from one month to almost three years. Three mall loans received extension modifications, while the other oscillated between performing and nonperforming matured status for the past two years, as the borrower and special servicer negotiate.”
Three of the five major commercial property sectors recorded delinquency rate declines. The office sector fell 114 basis points to 11.20%, down from its record high of 12.34% in January. The retail sector decreased 74 basis points to 6.30%, its lowest level since August 2024. The multifamily sector dropped nine basis points to 6.85%.
The lodging sector’s delinquency rate increased 38 basis points to 5.94% and the industrial sector inched up five basis points to 0.67%.
