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NEW YORK—The Covid-19 pandemic is dealing a major blow to the already battered retail industry, and the CMBS market has begun to see the fallout.

The retail delinquency rate was 3.89% in early April—higher than any other sector, according to a new analysis of the coronavirus’ impact on the retail market by Trepp. And that delinquency rate is expected to climb as data from the second half of April comes in, given that many major retailers have announced they will stop paying rent while they remain closed to shoppers. A large number of retailers missed their April 1 rent payment, Trepp reported.

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