The commercial mortgage-backed securities (CMBS) delinquency rate passed the 7% mark for the first time since January 2021, according to new data from Trepp Inc.
April’s delinquency rate of 7.03% marked a 38 basis points month-over-month increase, with the overall delinquent balance totaling $41.9 billion, up from $39.3 billion in March. One year ago, the CMBS delinquency rate was 5.07%.
“Two property types that experienced substantial increases were multifamily and lodging,” said Vivek Denkanikotte, Trepp research associate. “The multifamily delinquency rate soared another 113 basis points to 6.57%. This follows March’s increase, which marked the highest reading since March 2015, when the rate stood at 8.28%.”
Also driving the rate higher was the lodging sector, whose rate rose for the fourth consecutive month by 66 basis points to 7.85%, hitting a three-year high. The office delinquency rate also surged by 52 basis points to 10.28%, reversing three months of declines.
The only sectors recording downward delinquency rates were industrial real estate at 0.50%, down 10 basis points, and retail at 6.78%, down 65 basis points.
