Trepp reported that delinquency rate for multifamily commercial mortgage-backed securities (CMBS) loans ticked up slightly again in September, moving up 1 basis point. The delinquency rate for the overall CMBS market rose after falling last month.
The history of the overall and multifamily CMBS delinquency rates as reported by Trepp since January 2020 is illustrated in the chart, below.
Overall CBMS delinquency rate rises
For delinquencies, Trepp focuses on loans that are 30 or more days delinquent. The current CMBS delinquency report provides data through September 2023. While it only looks at CMBS loans, it breaks out results by the type of property covered by the loans.
The delinquency rate on loans on multifamily property was 1.85 percent, up from 1.84 percent in August. One year ago, the delinquency rate on CMBS loans for multifamily property was 0.93 percent.
Trepp found that the overall delinquency rate of CMBS loans in September was 4.39 percent. This is up from last month’s level of 4.25 percent. In its commentary, Trepp noted that the change was a driven by the increase in the delinquency rate on loans for office properties. Other property types had only minor changes in their delinquency rates.
The report noted that loans that are past their maturity date but are still current on their interest payments are not counted as being delinquent. However, if they were included, the overall delinquency rate on CMBS loans would rise to 5.17 percent from the 4.39 percent reported above.
Your property type may vary
The other property types whose CMBS loan delinquencies were examined by Trepp were industrial, lodging, office and retail.
Office CMBS delinquencies had the largest percentage change in the month, rising from 5.07 percent to 5.58 percent. Delinquencies on CMBS loans for lodging properties fell to 5.27 percent from August’s level of 5.31 percent. Delinquencies on CMBS loans on retail properties rose to 6.92 percent from last month’s level of 6.87 percent. Industrial CMBS delinquencies fell from 0.33 percent to 0.30 percent.
The full Trepp report can be found here.
