Increase in Office CMBS Delinquencies Despite Overall Rate Stability

In April, the Trepp CMBS Delinquency Rate held steady at 3.09%, however, office delinquencies rose 16 basis points to 2.77%. While retail and hotel delinquencies have declined over the past 12 months, office late-pays have increased by more than 100 bps. According to Manus Clancy from Trepp “Office remains the most heavily watched part of the market as firms look to aggressively reduce space” due to sublease space reaching record highs in many markets and companies letting leases expire or renewing for smaller footprints.