The Trepp CMBS Delinquency Rate decreased by one basis point to 7.54% in April 2026. At the property-type level, delinquency rates for two of the five major property type increased while three decreased.

Industrial moved modestly higher by 31 basis points to 0.96%, due to one portfolio loan going 30 days delinquent. Multifamily increased 56 bps to 7.71%, exceeding last month’s high-water mark. This was due primarily to two large multifamily loans, one in San Francisco and one in New York City and both going 30 days delinquent.

Lodging posted the largest decrease of 79 bps to 6.52%, reversing the March increase as two large loans changed status. Retail had a 31-bp drop to 6.31% as two premium outlet loans also became performing, matured balloons. The office rate is largely in line with March, declining two bps to 11.69%.

The five largest newly delinquent loans accounted for just over $1.26 billion of the roughly $2.63 billion in newly delinquent loans. They included a Houston office loan, a New York City office loan, the two large multifamily loans mentioned previously and a national warehouse and distribution portfolio.

NYC office demand has decreased 22% since March, equivalent to 3 million square feet, but it is still above the 2021-2023 monthly average, according to the latest data from VTS.  

Small tenants (<10k square feet) have shown positive momentum, while the tech and legal sectors experienced declines. The average size of tenants rolling in for 2027-2028 is larger than those rolling in near term (2025-2026). Trophy assets saw the biggest rent increase in April, followed by Class A and Class B properties. 

Institutional investors, including Boston Properties, Brookfield, Blackstone, and others, are signaling a shift towards capital deployment this year. VTS’ Leasing Prediction Outlook for 2024 suggests a 17% increase in leasing compared to 2023. 

The Trepp CMBS Delinquency rate surged in April 2024 after posting a slight decline in March. Overall, the delinquency rate increased 40 basis points to 5.07% for the highest level since September 2021, when the rate was 5.35%.

The increase was driven by spikes in the office, lodging and retail sectors, Trepp said. More than a dozen securitized loans with outstanding balances greater than $100 million became delinquent during April.

Office led in both the overall delinquency rate at 7.38% and the biggest monthly increase at 80 bps, following by lodging with a 52-bp increase and retail with a 38-bp rise. The size of the month-over-month increases for each of these three property sectors was the highest in almost a year.

Conversely, multifamily delinquencies saw a 51-bp decrease to 1.33%, while industrial delinquencies declined three bps to 0.44%