The Trepp CMBS Delinquency Rate continued its upward trend in October 2024, increasing 28 basis points to 5.98%. Year over year, it’s up 135 bps. 

In October, all major commercial property types saw monthly delinquency rate decreases or remained unchanged, with the exception of office, which saw a 101-bp increase. Industrial held steady from September at 0.32%, multifamily delinquencies crept downward nine bps to 3.24%, lodging delinquencies fell 14 bps to 6.09% and retail delinquencies dropped 25 bps to 6.82%.

The office delinquency rate reached 9.37%, up from 8.36% in September and 5.75% a year ago. The last time the office rate breached 9% was in 2012 and 2013, when the overall CMBS delinquency rate reached an all-time high of 10.34% in July 2012. 

The office sector accounted for more than 60% of the newly delinquent loan amount in October, according to Trepp. Much of that was due to a single large office loan.

Driven by the retail sector, the Trepp CMBS Delinquency Rate continued its uphill climb in September 2024, rising 26 basis points to 5.70%. Although most of the major property types contributed to the rise in the overall rate, retail contributed to about 50% of the net change in the total delinquent loan amount.

The retail delinquency rate rose 86 bps in September to 7.07%, Trepp reported. The last time the retail delinquency rate was above 7.0% was April 2022. A large single-asset, single-borrower deal that previously was current on payments but now registers as a nonperforming matured balloon was one of many large retail loans to turn delinquent in September.

Office accounted for 37% of the $2-billion net increase in the overall dollar amount of delinquent loans in September, with the office delinquency rate increasing 39 bps to 8.36%. Multifamily’s month-over-month increase was smaller at three bps to 3.33%, while industrial CMBS delinquencies declined 18 bps to a rate of 0.32% for the month.