2024 CMBS Delinquency Rates

The Trepp CMBS Delinquency rate continued ticking up in July 2024. Overall, the delinquency rate increased 8 basis points to 5.43 percent.

The increase was primarily driven by the office sector, which accounted for almost two-thirds of newly delinquent loans in July. The office delinquency rate is now above 8 percent for the first time since November 2013 when the rate was at 8.58 percent. About $1.88 billion in office loans became newly delinquent in July, which was offset by just shy of $600 million in office loans that were 30+ days delinquent in June but were no longer delinquent in July.

The two property sectors that saw a decline in the delinquency rate were retail and lodging.

Largest delinquent loans

The largest loan that became delinquent in July contributed to about one-third of the amount of newly delinquent office loans. It was an office loan that had its delinquency status turn back to nonperforming matured balloon from performing matured balloon. The status on the loan has flipped back and forth a couple times since the loan defaulted at maturity in December 2023.

If we included loans that are beyond their maturity date but current on interest, the delinquency rate would be 6.78 percent, up 24 basis points from June.

The percentage of loans in the 30 days delinquent bucket is 0.25 percent, down 11 basis points for the month.

Our numbers assume defeased loans are still part of the denominator unless otherwise specified.

—Posted on August 26, 2024