In October 2024, the Trepp CMBS Delinquency Rate continued to rise, reaching 5.98%, which is a 28 basis point increase from the previous month. This represents a year-over-year increase of 135 bps.
During this time period, all major commercial property types experienced either decreases or no change in their delinquency rates except for office properties, which saw an increase of 101 bps. Industrial properties maintained their September rate at just .32%, while multifamily delinquencies decreased by nine bps to reach a rate of only3.24%. Lodging and retail also saw improvements with decreases of14 and25bps respectively.
The office sector had the highest delinquency rate at9.37%in October compared to8.36% in Septemberand5.75%a year ago.This is the first time since2012-2013thattheoffice sector has reached such high levels; during that time,the overall CMBSdelinquencyrate hitanall-timehighof10:34%.
AccordingtoTrepp’s dataforOctober,theoffice sector accounted for over60%of newlydelinquent loans.Mostofthis can be attributedtoa single large loan within this category.
