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Office and Multifamily CMBS Delinquencies Reach New Highs
Multifamily and office CMBS delinquencies climbed in August, Trepp reported. The apartment sector saw a 71-basis-point increase to 6.86%, a nine-year high, while office delinquencies rose by 62 bps to another all-time high of 11.66%.
Conversely, retail delinquencies saw significant movement in the opposite direction. Trepp reported a 48-bp drop to 6.42%, the lowest delinquency rate for retail-backed CMBS in a year.
August also saw CMBS delinquencies overall increase for the sixth consecutive month, with a six-bp increase to 7.29%. The all-time peak occurred in August 2012, with a 10.34% delinquency rate.
In August, the overall delinquent balance was $44.1 billion, and the outstanding balance of CMBS
was $604.6 billion. Both numbers are up from $43.3 billion and $598.9 billion in July,
respectively. The office sector contributed the most among property types to the net increase in
delinquency, with newly delinquent loans totaling $2.5 billion against $1.3 billion of cures, according to Trepp.
- ◦Financing
