The commercial mortgage-backed securities (CMBS) delinquency rate rose by 5 basis points in June to 7.13%, according to new data from Trepp Inc.
The overall delinquent balance was $42.3 billion this month, down from $42.6 billion in May, while the outstanding balance was $593.4 billion, down from $601.6 billion in May. One year ago, the CMBS delinquency rate was 5.35%.
“In May, four of the five main property type delinquency rates decreased, but the opposite happened in June,” said Vivek Denkanikotte, Trepp research associate. “The delinquency rates for four of the five rose in June, with only the multifamily rate pulling back, by 20 basis points [to 5.91%].”
Denkanikotte added, “The sector that had the highest rate increase was the office sector, climbing 49 basis points to 11.08% and reaching another record high, surpassing its previous peaks in 11.01% in December 2024, and 10.70% in July 2012. Lodging delinquency has been quite volatile in recent months, rising 42 basis points to 6.81% in June after shedding nearly 150 basis points in May.”
Among the other sectors, the industrial delinquency rate was up by 3 basis points to 0.51% and the retail delinquency rate increased by 5 basis points to 6.69%.
