The U.S. commercial mortgage-backed securities delinquency rate reversed course in February, declining 33 basis points to 7.14%, according to Trepp.
The improvement was primarily driven by modifications and extensions of several large matured loans, including five office properties and four malls, the Trepp report said. Office extensions ranged from one month to nearly three years, while three mall loans received extensions and one oscillated between performing and nonperforming status as borrower and special servicer negotiations continued.
Across property types, three of the five major sectors saw declines. Office delinquencies led the pullback, falling 114 bps to 11.2%, down from January's all-time high of 12.34%. The sector has now declined in three of the past four months.
Retail delinquency also decreased, dropping 74 basis points to 6.3%, marking the lowest reading since August 2024. Multifamily edged down nine bps to 6.85%, 27 bps below its October 2025 peak.
Lodging and industrial were the two sectors that rose. Lodging delinquencies increased 38 bps to 5.94%, following January's 5.56%, while industrial ticked up five bps to 0.67%, after rising from a December 2024 low of 0.29% to a December 2025 high of 0.8%.
If loans past their maturity date but current on interest — classified as performing matured balloons — were included, the overall delinquency rate would be 8.75%, down 39 bps from January. The seriously delinquent rate, covering loans 60 or more days past due, in foreclosure, REO or nonperforming balloons, fell 20 bps to 6.89%.
Meanwhile, loans 30 days delinquent accounted for just 0.25% of balances, down 13 bps from January, according to Trepp.
Looking specifically at CMBS 2.0+, which refers to post-2008 issuance with stronger underwriting, enhanced disclosures and improved servicing practices, the delinquency rate also fell 33 bps to 7.05%, with seriously delinquent loans at 6.8%, down 20 bps. Property-level trends mirrored the broader market: office 11.08% (-115 bps), retail 5.99% (-75 bps), multifamily 6.85% (-9 bps), lodging 5.94% (+38 bps, and industrial 0.67% (+5 bps).
Year-over-year, the headline CMBS delinquency rate is up 84 bps, said Trepp.
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