**CMBS Delinquencies See First Decline in Seven Months**
The Trepp CMBS Delinquency Rate decreased in September 2025, dropping by six basis points to 7.23%. This marks the first monthly decline since February. The overall delinquent balance fell to $43.5 billion from $44.1 billion in August, while the total outstanding balance slipped to $601.3 billion from $604.6 billion.
According to Trepp, every commercial real estate sector except one experienced a decrease in delinquency rates during the month. The retail sector was the lone exception, rising 34 basis points to 6.76% after two consecutive months of improvement.
Lodging showed the most significant improvement, with its delinquency rate dropping 73 basis points to 5.81% — the lowest level since March 2024. Office delinquencies decreased by 53 basis points to 11.13%, a retreat from August’s all-time high. Meanwhile, the multifamily delinquency rate declined 27 basis points to 6.59%, although this remains nearly double its level from a year ago. The industrial sector continued to perform strongly, seeing a slight improvement as its delinquency rate dipped from 0.60% to 0.56%.
This slight overall improvement breaks a six-month trend of rising delinquency rates across the CMBS market.
