Trepp reported that delinquency rate for multifamily commercial mortgage-backed securities (CMBS) loans rose again in September, but only by 3 basis points basis points. This comes after four months where multifamily delinquencies increased by between 27 and 67 basis points each month.
Overall CBMS delinquency rate moves higher
For delinquencies, Trepp focuses on loans that are 30 or more days delinquent. The current CMBS delinquency report provides data through September 2024. 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 3.33 percent, up from 3.30 percent in August, 2.63 percent in July, 2.36 percent in June, 1.70 percent in May and 1.33 percent in April. One year ago, the delinquency rate for CMBS loans for multifamily property was 1.85 percent.
Trepp found that the overall delinquency rate of CMBS loans in September was 5.70 percent. This is up 26 basis point from last month’s level and also up 145 basis points from its level 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 7.15 percent from 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.
Industrial continues to shine
The other property types whose CMBS loan delinquencies were examined by Trepp were industrial, lodging, office and retail.
The delinquency rate for industrial property fell again this month, dropping 18 basis points to 0.32 percent. This remains by far the lowest CMBS delinquency rate of the property types tracked by Trepp.
The delinquency rates on CMBS loans on lodging, office and retail properties all rose significantly this month. The delinquency rate on retail property made the biggest jump, rising 86 basis points to 7.07 percent. The delinquency rate on office properties remained the highest of those Trepp tracks. It rose 39 basis points to 8.36 percent. The delinquency rate on lodging properties rose 32 basis points to 6.23 percent.
The full Trepp delinquency report can be found here.
