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Retail Drives September Increase in CMBS Delinquencies
Driven by the retail sector, the Trepp CMBS Delinquency Rate continued its uphill climb in September 2024, rising 26 basis points to 5.70%. Although most of the major property types contributed to the rise in the overall rate, retail contributed to about 50% of the net change in the total delinquent loan amount.
The retail delinquency rate rose 86 bps in September to 7.07%, Trepp reported. The last time the retail delinquency rate was above 7.0% was April 2022. A large single-asset, single-borrower deal that previously was current on payments but now registers as a nonperforming matured balloon was one of many large retail loans to turn delinquent in September.
Office accounted for 37% of the $2-billion net increase in the overall dollar amount of delinquent loans in September, with the office delinquency rate increasing 39 bps to 8.36%. Multifamily’s month-over-month increase was smaller at three bps to 3.33%, while industrial CMBS delinquencies declined 18 bps to a rate of 0.32% for the month.
- ◦Financing
