The Trepp CMBS Delinquency Rate saw a modest increase in May 2025, edging up five basis points from the prior month. This uptick followed April’s figure, which already represented a four-year high for the commercial mortgage-backed securities market.
Despite the overall increase, four of the five major property sectors actually recorded declines in their delinquency rates. The two exceptions were office and mixed-use properties, which were the primary contributors to the rise, according to data from Trepp.
The office sector’s delinquency rate climbed by 31 basis points to reach 10.59% in May. While this is slightly down from the record-high of 11.01% logged in December 2024, the current rate remains significantly elevated — more than 350 basis points higher than it was a year ago.
Mixed-use properties also contributed to the overall increase, with nearly $2 billion in loans becoming newly delinquent during the month. This surge was mainly attributed to a few large loans turning delinquent.
In contrast, the lodging sector experienced the most notable improvement. Lodging delinquencies dropped by 146 basis points to 6.39%, recovering from a three-year high of 7.85% reached after four consecutive months of increases. The multifamily sector saw its delinquency rate decrease by 46 basis points to 6.11%, though it remains up by 441 basis points year-over-year.
Retail and industrial properties also saw minor declines in delinquency, continuing a gradual trend of stability across several sectors of the commercial real estate market.
