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National  + Finance  |  July 28, 2023
Paul Bubny
By: Paul Bubny

Trepp: CRE Bank Loan Performance Declines in Q1

Delinquency rates for bank-held commercial real estate (CRE) loans increased in the first quarter, with all major property types other than industrial showing greater distress, Trepp reported last week. Lender concern about risk, indicated by criticized loan rates, increased across multiple regions for primarily the multifamily and office property sectors.  

Trepp said the pace of origination volume slowed dramatically in both Q4 2022 and Q1 2023, with Q1 2023 commercial mortgage origination volume at only about 40% of 2019’s quarterly average.  

Meanwhile, Q1 saw more sizable increases in CRE mortgage delinquencies than the prior quarter. The total delinquency rate rose 23 basis points from 0.80% in Q4 2022 to 1.03% in Q1 2023 quarter. The serious delinquency rate, or the non-current loan rate, also experienced an uptick of 23 bps, increasing from 0.55% in Q4 2022 to 0.78% in 2023’s first quarter. 

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).
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