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CMBS Delinquencies Inch Upward in June; Office Hits New Peak
The Trepp CMBS Delinquency Rate increased five basis points in June to 7.13%. In June, the overall delinquent balance was $42.3 billion, down from $42.6 billion in May, and the outstanding balance was $593.4 billion, down from $601.6 billion in May.
While four of the five main property type delinquency rates decreased in May, the opposite was true in June. The delinquency rates for four of the five rose in June, with only multifamily pulling back, by 20 bps.
The sector with the highest rate increase was office. It climbed 49 bps to 11.08% and reached another record high, surpassing its previous peaks in 11.01% in December 2024, and 10.70% in July 2012.
Trepp reported that lodging delinquency has been quite volatile in recent months, rising 42 bps to 6.81% in June after dropping nearly 150 bps in May. In June, the main contributor to the rise in the headline rate was the reduction in the overall balance, with the overall delinquent balance minimally changed.
- ◦Financing
