CMBS Delinquency Rate Rises in April

(Image courtesy of Trepp)

Trepp, New York, reported its CMBS delinquency rate rose again in April, up 38 basis points to 7.03%.

This is the first time the rate has risen above 7% since January 2021.

Year-over-year the overall U.S. CMBS delinquency rate is up 196 basis points.  

The overall delinquent balance in the month was $41.9 billion, up from $39.3 billion in March.

Trepp noted that if the metric included loans that are beyond their maturity date but current on interest, the delinquency rate would be 8.37%, flat from March. The percentage of loans in the 30-days delinquent bucket is 0.49%, up 16 basis points.

If defeased loans were taken out of the equation, the overall headline delinquency rate would be 7.27%, up 41 basis points.

The percentage of loans that are seriously delinquent–defined as 60-plus days delinquent, in foreclosure, real estate owned or non-performing balloons–is 6.54%, up 22 basis points.

The multifamily delinquency rate was up 113 basis points to 6.57%. The spike was driven by more than $1 billion in newly delinquent multifamily loans, with less than $200 million cured.

The lodging sector also saw its delinquency rate increase, up 66 basis points to 7.85%, the highest since February 2022.

And, the office sector rose 52 basis points to 10.28%, after three months of decreases. The sector had hit a record high of 11.01% in December.

The retail sector fell 70 basis points to 7.12%, and the industrial rate declined by 10 basis points to 0.5%.

The CMBS 2.0+ delinquency rate was up 41 basis points to 6.95%.