**CMBS Delinquency Rate Declines for First Time Since February 2025**
The Trepp CMBS Delinquency Rate saw a notable improvement in September 2025, decreasing by six basis points to 7.23%. This marks the first monthly decline since February. The total delinquent balance for the month stood at $43.5 billion, down from $44.1 billion in August. Meanwhile, the overall outstanding balance dropped to $601.3 billion from $604.6 billion.
According to Trepp, all commercial real estate sectors—except retail—experienced a decline in delinquency rates. Retail was the only sector to see an increase, rising 34 basis points to 6.76% after two consecutive months of declines.
The lodging sector recorded the largest improvement, dropping 73 basis points to 5.81%, its lowest level since March 2024. Office delinquencies fell 53 basis points to 11.13%, still significantly elevated but down from the record high in August. The multifamily sector improved by 27 basis points, decreasing from 6.86% to 6.59%, though this rate remains nearly double where it stood a year ago. The industrial sector remained the most stable, with delinquencies inching down by four basis points to 0.56%.
These trends offer a cautiously optimistic signal that some areas in the CMBS market may be beginning to stabilize.
