The delinquency rate for commercial mortgage-backed securities (CMBS) increased by rose 26 basis points this month to 5.70%, according to new data from Trepp Inc. Year-over-year, the overall CMBS delinquency rate is up 131 basis points from 4.39%.
While most of the major property types saw increases in their respective delinquency rates, the retail sector contributed to about 50% of the net change in the total delinquent loan amount – its 86 basis points upswing drove the rate up to 7.07%, which marked the first time since April 2022 that the retail delinquency rate was above 7.0%. Trepp noted that a large single-asset single-borrower (SASB) deal that had previously been current on payments but now shows a delinquency status of nonperforming matured balloon was among many large retail loans that turned delinquent in September.
The office sector accounted for 37% of the $2 billion net increase in the overall dollar amount of delinquent loans in September, with the office delinquency rate increasing 39 basis points to 8.36%. The lodging delinquency rate increased 32 basis points to 6.23% and the multifamily delinquency rate increased 3 basis points to 3.33%. Only the industrial delinquency rate was down, taking an 18 basis points dive to 0.32%.
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