Trepp: CMBS Delinquency Rate Increases

(Image courtesy of Stephen Leonardi/pexels.com)

Trepp, New York, announced the CMBS delinquency rate increased by 41 basis points to 7.55% in March 2026.

That reverses the recent decline in February.

Year-over-year, the overall U.S. CMBS delinquency rate is up 90 basis points.

The five largest newly delinquent loans accounted for over $2 billion of the almost $5.1 billion in newly delinquent loans, and roughly 40% of the newly delinquent loans this month were considered performing matured balloons last month. Non-performing matured balloon was the most common delinquency classification.

If loans that were past their maturity rate but current on interest were included, the delinquency rate would register 9.07%, up 32 basis points from February.

The seriously delinquent rate–defined as 60+ days delinquent, in foreclosure, REO or non-performing balloons–rose to 7.29% from 6.89%.

The percentage of loan balance in the 30-day delinquent bucket is 0.26%, essentially flat from February.

If defeased loans were taken out of the equation, the overall headline delinquency rate would be 7.74%, up 43 basis points from February.

By property type, four of the five major property type rates increased. Lodging increased 137 basis points to 7.31%.

Office increased 51 basis points to 11.71%, and retail increased 32 basis points to 6.62%. Multifamily also rose 30 basis points, to 7.15%.

Industrial dipped slightly from 0.67% to 0.65%.

The CMBS 2.0+ delinquency rate rose 40 basis points to 7.45%.