CMBS Delinquencies Post Slight Increase in February

The Trepp CMBS Delinquency rate inched up in February, rising five basis points overall to 4.71%. Year over year, the overall U.S. CMBS delinquency rate is up 159 bps.

In the closely watched office segment, delinquencies rose 33 bps in February to 6.63%. The month-over-month increase is roughly in line with the average 37-bp monthly gain for the sector over the past 12 months, according to Trepp.

The retail segment posted the largest decline of all property sectors for the month, dropping 24 bps to 6.03%. That said, retail CMBS still represents the second-highest delinquency rate, compared to 5.45% for lodging, 1.81% for multifamily and 0.43% for industrial.

If loans that are beyond their maturity date but current on interest were included, the delinquency rate would be 5.69%, up seven bps from January. The percentage of loans that are 30 days delinquent is 0.30%, up six bps for the month.

Trepp said the all-time high for the CMBS delinquency rate was 10.34%, registered in July 2012. The COVID-19 high was 10.32% in June 2020.