Overall CMBS delinquency rates have edged higher, even as office delinquencies declined for a second consecutive month, according to Trepp’s latest CMBS delinquency report. The overall delinquency rate increased 4 basis points month-over-month to 7.3% in December, bringing the year-over-year increase to 73 bps.
By comparison, the overall CMBS delinquency rate was 6.57% a year ago and 7.13% six months ago.
Performance across property types remained mixed in December. Lodging, industrial and retail delinquencies increased, while office and multifamily rates retreated.
Lodging recorded the largest rate increase in December, rising 44 bps to 6.61%. Industrial delinquencies followed, climbing 13 bps to 0.8%, after a smaller increase in November. Retail delinquencies rose 18 bps to 6.92%, though the sector remains 90 bps below its March 2025 peak.
Office delinquencies posted the largest monthly improvement, declining 37 bps to 11.31%, marking a second consecutive month of declines. While office remains the most stressed major property type, December’s drop offers early signs of stabilization. Multifamily delinquencies also improved, falling 34 bps to 6.64%.
Loan-level activity reflected these trends. Newly delinquent balances totaled just under $2.9 billion in December, while nearly $3 billion in loans were cured during the month, resulting in a net delinquency decrease of approximately $103 million. Retail was the largest contributor to net new delinquencies, adding $179 million, followed by mixed-use properties at $145 million. Office recorded the greatest improvement, with $510 million in delinquent balances resolving, while multifamily saw a $195 million net reduction.
Serious delinquencies held steady at 7%.
Within the CMBS 2.0+ universe, which includes post-financial-crisis deals with enhanced underwriting and disclosure standards, the delinquency rate rose 3 bps to 7.2% in December.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.