Trepp Reports CMBS Delinquency Rate Rises Again in December

(Image courtesy of Trepp)

Trepp, New York, reported its CMBS delinquency rate rose in December, with the overall rate up 17 basis points to 6.57%.

Year-over-year the delinquency rate is up 206 basis points.

The percentage of loans that are seriously delinquent–defined as 60-plus days delinquent, in foreclosure, REO or non-performing balloons–sits at 6.31%. That’s up 43 basis points for the month.

The percentage of loans in the 30-days delinquent bucket is 0.26%, down 26 basis points.

If defeased loans were not included, the overall headline delinquency rate would be 6.83%, up 18 basis points from the previous month.

The CMBS 2.0+ delinquency rate was up 19 basis points, to 6.47%. That’s up 216 basis points year-over-year.

The office delinquency rate was up by 63 basis points, hitting 11.01%. That’s the first time the office delinquency rate has ever been north of 11% since Trepp began tracking rates in 2000.

More than $2 billion in office loans became newly delinquent in December.

Retail saw the largest increase across the tracked property types, up 86 basis points to 7.43%. The sector had a tough 2024, with an increase of more than 115 basis points overall to stand at a 2.5-year high.

Industrial fell slightly, by 3 basis points. Lodging also fell, from 6.92% in November to 6.14% in December.

Multifamily ticked up from 4.18% in November to 4.58%.