2024 CMBS Delinquency Rates

The Trepp CMBS delinquency rate jumped back above 5 percent in June 2024. The increase is somewhat expected after last month’s slight retreat given that the CMBS delinquency rate has been on an upward trend, increasing in four of the last six months. Overall, the delinquency rate increased 38 basis points to 5.35 percent.

The net increase in delinquent loans in June across the five major property types was just shy of $2 billion, with the office sector accounting for half of the net increase. There was roughly $1.87 billion in newly delinquent office loans during the month which was offset by roughly $900 million in office loans that were 30+ days delinquent in May but were no longer delinquent in June.

The other two sectors that posted large increases in their respective delinquency rates were retail and multifamily, accounting for 27 percent and 20 percent, respectively, of the $2 billion net increase in the overall dollar amount of delinquent loans in June. The retail sector had a roughly $525 million net increase in the volume of delinquent loans in June. The four largest loans that became delinquent in June had balances greater than $100 million and were all malls.

If we included loans that are beyond their maturity date but current on interest, the delinquency rate would be 6.54 percent, up 54 basis points from May.

The percentage of loans in the 30 days delinquent bucket is 0.36 percent, up 1 basis point for the month.

Our numbers assume defeased loans are still part of the denominator unless otherwise specified.

—Posted on July 26, 2024