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CMBS Delinquencies Post Slight Improvement, Led by Retail
The Trepp CMBS Delinquency rate dropped slightly in March 2024 for an overall delinquency rate of 4.67%, a decline of four basis points from February. The decline was almost exclusively due to continued
improvements in the retail sector, which saw its delinquency rate decline 47 bps in March to 5.56%.
“Ironically, the office sector was one of only two sectors that saw a decline in the delinquency rate,” Trepp reported, with the other being retail. The office delinquency rate declined five bps to 6.58%, the highest among the major property types. The multifamily and industrial delinquency rates ticked up by a few bps in March, while hospitality delinquencies were flat at 5.45%.
If loans that are beyond their maturity date but current on interest were included, the delinquency rate would be 5.43%, down 26 bps from February, according to Trepp. The percentage of loans in the 30-days- delinquent bucket is 0.16%, down 14 bps for the month.
Separately, Trepp reported a sizable increase in new CMBS issuance during the first quarter of 2024. Total issuance was $18 billion, up 40% from Q4 2023.
- ◦Financing
