Delinquency rates for bank-held commercial real estate (CRE) loans increased in the first quarter, with all major property types other than industrial showing greater distress. Trepp reported last week that lender concern about risk, indicated by criticized loan rates, had risen across multiple regions primarily for multifamily and office property sectors.
Trepp also noted a dramatic slowdown in origination volume during both Q4 2022 and Q1 2023; with the latter’s commercial mortgage origination volume at only around 40% of 2019’s quarterly average. The total delinquency rate rose 23 basis points from 0.80% to 1.03%, while serious delinquencies – or non-current loan rate – experienced an uptick of 23 bps from 0.55% to 0
