Trepp reported that delinquency rate for multifamily commercial mortgage-backed security (CMBS) loans moved higher again in July, rising 27 basis points. July is the third month in a row of increases in the multifamily delinquency rate, which now has reached its highest level since late 2023.
Overall CBMS delinquency also moves higher
For delinquencies, Trepp focuses on loans that are 30 or more days delinquent. The current CMBS delinquency report provides data through July 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 2.63 percent, up from 2.36 percent in June, 1.70 percent in May and 1.33 percent in April. One year ago, the delinquency rate on CMBS loans for multifamily property was 1.83 percent.
Trepp found that the overall delinquency rate of CMBS loans in July was 5.43 percent. This is up 8 basis points from last month’s level of 4.97 percent and also up 102 basis points from its level of 4.41 percent one year ago.
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 6.78 percent, 135 basis points higher than the level 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.
Office drives the rise
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 office property took the largest jump for the month, rising 54 basis points to 8.09 percent. The delinquency rate for industrial property edged higher, rising 2 basis points to 0.64 percent. This remains by far the lowest delinquency rate for the property types tracked by Trepp.
The CMBS delinquency rates for lodging and for retail property fell for the month. The delinquency rate for lodging property fell 15 basis points to 6.17 percent while the rate for retail property fell 28 basis points to 6.14 percent.
The full Trepp delinquency report can be found here.
