Trepp Reports CMBS Delinquency Rate Increase in March 2025
The Trepp CMBS Delinquency Rate saw an upward shift in March 2025, reversing two consecutive months of decline. The overall delinquency rate increased by 35 basis points, reaching 6.65%. The total balance of delinquent loans rose from $36.0 billion in February to $39.3 billion in March, bringing the figure close to a four-year high.
A significant driver of the increase was the multifamily sector, which saw delinquencies climb by 98 basis points to 5.44%. This marks a 360 basis point surge over the past year, pushing the multifamily delinquency rate to its highest level since December 2015, when it stood at 8.28%.
The lodging sector also experienced a notable increase, with its delinquency rate rising 76 basis points to 7.19%. Both the industrial and retail sectors reported more moderate gains of 26 and 33 basis points, respectively.
In contrast, the office sector showed a slight improvement, with delinquencies declining by 2 basis points to 9.76%. This marks the third consecutive monthly decline for office sector delinquencies, according to Trepp.
These shifts highlight continued volatility and pressure across several commercial real estate sectors.
