Trepp’s April CMBS report has revealed that overall delinquency rates spiked once again; this time rising by 38 basis points month-over-month to reach 7.03%. This marked the first time the rate surpassed the 7% threshold since January 2021. Compared to the previous year, the delinquency rate rose by 196 basis points, reflecting a growth in the delinquent balance from $39.3 billion in March to $41.9 billion in April. Looking at the trend from January through April, the overall delinquency rates were 6.56%, 6.30%, 6.65%, and 7.03%, respectively.
Trepp noted that if loans beyond their maturity date but still current on interest were included, the delinquency rate would stand at 8.37%, the same level as in March 2025. In April, 91.62% of loans were current. The percentage of loans 30 days delinquent increased by 16 basis points from March to 0.49%. Loans 60 days delinquent accounted for 0.16%, while those 90 days delinquent made up 0.46%. Performing matured balloon loans represented 1.34%, and non-performing matured balloon loans were at 2.50%. Approximately 2.49% of loans were in foreclosure, and 0.93% were classified as real estate owned (REO), meaning under the lender’s ownership.
Among property types, multifamily and lodging experienced the largest increases in delinquency rates. Multifamily rates rose from 4.62% in January to 4.46% in February, then jumped to 5.44% in March and 6.57% in April. This is a significant increase from the April 2024 rate of 1.33%. Lodging followed a similar upward trajectory, with delinquency rates moving from 6.23% in January to 6.43% in February, 7.19% in March, and 7.85% in April, compared to 5.97% a year earlier. The month-over-month increase was 113 basis points for multifamily and 66 basis points for lodging, representing the largest jumps among property types.
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Despite these increases, the highest delinquency rates remained in the office sector, which recorded rates of 10.23% in January, 9.78% in February, 9.76% in March, and 10.28% in April. After a multi-month decline that suggested some improvement, the April rate climbed by 52 basis points, marking a return above the 10% level for the first time since the first month of the year.
Retail was one of the few categories to see a decrease in delinquency rates, with figures of 7.52% in January, 7.49% in February, 7.82% in March and 7.12% in April, reflecting a 60-basis-point drop. Industrial also experienced a slight decline last month. Rates moved from 0.46% in January to 0.34% in February, rising to 0.60% in March, and then falling to 0.50% in April, a 10-basis-point reduction.
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