Commercial Mortgage-Backed Securities (CMBS) Delinquencies Reaching Record Levels

“Roughly 11% of office buildings tied to CMBS loans were delinquent, beating the previous high watermark of 10.7% set during the Great Recession in December 2012, according to Trepp, which began tracking the CMBS sector in 2000. More than $2B in office loans became freshly delinquent in December, causing a 63-basis-point increase in the overall delinquency rate, according to Trepp. Multifamily borrowers also continue to fall behind on their loans as interest rates stay elevated, with the delinquency rate on apartment properties rising from 2.7% to 4.6%. More retail owners also are also having trouble staying current, with delinquencies rising from 6.5% at the end of 2023 to 7.4%.” Bisnow January 2, 2024