The delinquency rate for commercial mortgage-backed securities (CMBS) rose by 28 basis points to 5.98% in October, according to new data from Trepp Inc. Year-over-year, the overall CMBS delinquency rate is up 135 basis points from 4.63% in October 2023.
Last month’s spike was primarily fueled entirely by the office sector, which made up more than 60% of the newly delinquent loan amount. The office sector was the only corner of the commercial real estate world to record upward delinquency movement – a 101 basis points rise to 9.37%, up from 8.36% in September.
Among the other sectors, the industrial delinquency rate remained unchanged at 0.32%, the lodging delinquency rate decreased 14 basis points to 6.09%, the multifamily delinquency rate decreased nine basis points to 3.24% and the retail delinquency rate decreased 25 basis points to 6.82%.
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