**CMBS Delinquency Rate Rises in March Following Two Months of Decline**
The Trepp CMBS Delinquency Rate increased in March 2025, reversing a two-month downward trend. The overall delinquency rate rose by 35 basis points to 6.65%, with the total delinquent balance climbing from $36.0 billion in February to $39.3 billion in March. This marks a return to levels nearing a four-year high.
A major contributor to the overall increase was the multifamily sector. Delinquencies in this segment spiked by 98 basis points, reaching 5.44%. Over the past 12 months, the multifamily delinquency rate has surged by 360 basis points, now reaching its highest point since December 2015, when it was 8.28%.
The lodging sector also saw a notable rise in delinquencies, with its rate increasing by 76 basis points to 7.19%. The industrial and retail sectors followed with more moderate increases of 26 and 33 basis points, respectively.
In contrast, the office sector posted a slight decline, with the delinquency rate dropping by 2 basis points to 9.76%. This marks the third consecutive month of improvement in office sector performance, according to Trepp.
These shifts underscore the continued volatility across commercial real estate segments and reflect differing market pressures within property types.
