Multifamily CMBS delinquency rate slightly higher in March

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multifamily CMBS delinquency rate rises

Trepp reported that delinquency rate for multifamily commercial mortgage-backed securities (CMBS) loans rose slightly in March, increasing 3 basis points.

Overall CBMS delinquency rate declines

For delinquencies, Trepp focuses on loans that are 30 or more days delinquent. The current CMBS delinquency report provides data through March 2024. 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 1.84 percent, up from 1.81 percent in February but down from 1.91 percent in January. One year ago, the delinquency rate on CMBS loans for multifamily property was 1.91 percent.

Trepp found that the overall delinquency rate of CMBS loans in March was 4.67 percent. This is down 4 basis points from last month’s level of 4.71 percent.

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 4.90 percent from the 4.67 percent reported above.

The history of the overall and multifamily CMBS delinquency rates as reported by Trepp since January 2020 is illustrated in the chart, below.

CMBS delinquency rates

Retail shows improvement

The other property types whose CMBS loan delinquencies were examined by Trepp were industrial, lodging, office and retail.

The CMBS delinquency rate for loans on industrial property rose to 0.47 percent, up slightly from 0.43 percent reported last month but still well below the rates reported for other property types. Office CMBS delinquencies fell 5 basis points to 6.58 percent. Delinquencies on CMBS loans for lodging properties remained unchanged at 5.45 percent. Delinquencies on CMBS loans on retail properties fell for the month, dropping to 5.56 percent from last month’s level of 6.03 percent.

The full Trepp delinquency report can be found here.