**Office Sector Leads February Decline in CMBS Delinquencies**
The Trepp CMBS Delinquency Rate continued its downward trend in February 2025, with the overall delinquency rate dropping by 26 basis points to 6.30%. CMBS 2.0 loans ended the month with a delinquency rate of 6.18%. This marks the second consecutive month of decline after six straight months of increases, which peaked at 5.44% this past summer.
The office sector played a significant role in driving the overall decrease, as its delinquency rate fell by 45 basis points to 9.78%. This downward movement is a positive development for the sector, which had reached an all-time high delinquency rate of 11.01% at the end of 2024, according to Trepp.
Beyond the office sector, three of the four remaining major property types also saw decreases in their delinquency rates. The exception was the lodging sector, which experienced a 20-basis-point increase—the second-largest movement after the office sector’s decline.
This continued decline in the overall CMBS delinquency rate provides a sign of stabilization in the market, particularly for office properties, which faced heightened distress in the past year.
