In September 2024, the Trepp CMBS Delinquency Rate rose by 26 basis points to reach 5.70%, largely influenced by the retail sector. Retail contributed to about half of the overall increase in delinquent loan amounts across all major property types.
According to Trepp’s report, retail delinquencies increased by a significant 86 bps in September, reaching a rate of 7.07%. This is the first time since April of 2022 that retail delinquencies have surpassed the threshold of over seven percent. One notable factor contributing to this rise was a large single-asset, single-borrower deal that had previously been current on payments but is now classified as nonperforming due to maturity.
Office properties accounted for approximately one-third (37%) of the $2 billion net increase in total dollar amount for delinquent loans during September. The office delinquency rate also saw an uptick with an increase of39 bps and reached a rateof8 .36%. Multifamily properties experienced smaller month-over-month growth at only three bps and ended up witha3 .33%deliquencyrate.WhileindustrialCMBSdelinqunciesdeclinedby18bpsandendedupwitharateof0 .32%forthemonth.These findings suggest that while there was an overall increase in CMBS Delinquencies driven primarily by retail properties, other sectors such as office and industrial showed some signs improvement or stability during this period.
