Trepp Reports Slight Rise in CMBS Delinquency Rate in May 2025
The Trepp CMBS Delinquency Rate saw a modest increase in May 2025, rising five basis points from the previous month. This uptick follows April’s reading, which had already reached a four-year high. Despite the overall increase, four of the five primary commercial real estate property types reported declines in delinquencies.
Driving May’s overall increase were the office and mixed-use sectors, according to Trepp’s report. Office CMBS delinquencies rose by 31 basis points to 10.59%—still below the all-time high of 11.01% logged in December 2024, but more than 350 basis points higher than the same time last year. Mixed-use delinquencies also spiked due to nearly $2 billion in newly delinquent loans, primarily driven by a handful of large loans.
In contrast, the lodging sector experienced the most significant improvement, with delinquencies dropping 146 basis points to 6.39%. This decline followed four consecutive months of increases, which had pushed the rate to a three-year high of 7.85%. The multifamily sector saw a dip of 46 basis points, bringing the delinquency rate down to 6.11%. However, year-over-year, that figure remains 441 basis points higher.
Retail and industrial delinquencies declined as well, albeit more modestly. These trends suggest a divergence in risk levels across property categories, with office and mixed-use facing the most significant challenges at this time.
