According to Fitch Ratings, the overall default rate for CMBS loans increased in 2023 due to a rise in office and retail defaults. The annual and cumulative default rates for US CMBS loans rose from 0.3% and 17.9% in 2022 to 0.9% and 18.5%, respectively, driven by maturity and term defaults primarily in these two sectors which accounted for the majority of default volume.
In particular, office defaults saw a significant increase with $4.8 billion (55.9%) of total default volume coming from this sector compared to $1
