The delinquency rate for commercial mortgage-backed securities (CMBS) surged by 41 basis points (bps) to 7.55% in March, according to new data from Trepp Inc. One year ago, the CMBS delinquency rate was 6.65%.
“The five largest newly delinquent loans accounted for just over $2 billion of the almost $5.1 billion in newly delinquent loans,” said Thomas Taylor, senior manager for research at Trepp. “In addition, roughly 40% of the newly delinquent loans this month were considered performing matured balloon last month, continuing the sideways delinquency trend as loans mature, go delinquent, cure, and become delinquent again.”
Four of the five major commercial property sectors recorded delinquency rate increases last month.
“Lodging posted the largest increase, jumping 137 basis points to 7.31%, the first time it has been above 7% since its recent April 2025 peak of 7.85%,” Taylor continued.
Also rising was the multifamily delinquency rate (7.18%, up 33 bps), the office delinquency rate (11.60%, up 52 bps), and the retail delinquency rate (6.31%, up 32 bps). Only the industrial delinquency rate took a downturn, falling 2 bps to 0.65%.
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