Trepp reported that the delinquency rate for multifamily commercial mortgage-backed securities (CMBS) decreased again in June. The overall CMBS delinquency rate rose slightly, gaining 5 basis points as all other property types saw their delinquency rates rise.
Overall CBMS delinquency rate continues slow climb
For delinquencies, Trepp focuses on loans that are 30 or more days delinquent. The current CMBS delinquency report provides data through June. While it only looks at CMBS loans, it breaks out results by the type of property covered by the loans.
The delinquency rate for loans on multifamily property was 5.91 percent, down 20 basis points from last month’s reading. The multifamily CMBS delinquency rate has now fallen for two months in a row for the first time since February 2024. One year ago, the delinquency rate for CMBS loans for multifamily property was 2.36 percent, but it was in the beginning stages of its recent rise.
Trepp found that the overall CMBS delinquency rate in June was 7.13 percent. The overall CMBS delinquency rate is up from its level of 5.35 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 8.71 percent, up from 8.64 percent 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.
Office rates continue higher
The other property types whose CMBS delinquencies were examined by Trepp were industrial, lodging, office and retail.
The CBMS delinquency rates for office properties moved higher by another 50 basis points this month, reaching a new all-time high at 11.08 percent. It is up 132 basis points since its recent low in March.
The rate for lodging properties rebounded 42 basis points after last month’s decline, reaching 6.81 percent. The delinquency rate on CMBS loans on retail property loans rose 17 basis points to 7.06 percent. It has been above 7 percent for 7 of the last 10 months. The CMBS delinquency rate for industrial property rose 3 basis points to 0.51 percent, its highest level since July of last year.
The full Trepp delinquency report can be found here.
