Delinquency rates for bank-held commercial real estate (CRE) loans increased in the first quarter of 2023, with all major property types other than industrial showing greater distress, according to Trepp. Lender concern about risk was reflected by an increase in criticized loan rates across multiple regions primarily within the multifamily and office property sectors.
Trepp reported that origination volume slowed dramatically both in Q4 2022 and Q1 2023, with commercial mortgage origination volume at only around 40% of 2019’s quarterly average. Furthermore, larger increases were seen in CRE mortgage delinquencies compared to the prior quarter; total delinquency rate rose 23 basis points from 0.80% to 1.03%, while serious delinquency rate (non-current loan rate) also experienced an uptick of 23 bps from 0.55% up to 0
