### Office Sector Leads February Decline in CMBS Delinquencies
The Trepp CMBS Delinquency Rate continued its downward trend in February 2025, marking the second consecutive month of improvement. The overall delinquency rate dropped by 26 basis points to 6.30%, with CMBS 2.0 loans ending the month at 6.18% delinquent. This follows a six-month stretch of rate increases, which peaked at 5.44% in the summer of 2024.
The decline was primarily driven by improvements in the office sector. Office loan delinquency rates fell by 45 basis points to 9.78%, offering much-needed relief for a sector that had previously hit a record-high delinquency rate of 11.01% at the close of 2024, according to Trepp.
Beyond the office sector, three of the four remaining major property types also saw decreases in delinquency rates. The only exception was the lodging sector, which experienced a modest 20-basis-point increase. Aside from the office sector’s notable improvement, other property types saw relatively limited movement in their respective delinquency rates.
