National + Finance | March 3, 2023

CMBS Delinquencies Rise Sharply in February Following January Decline

CMBS delinquencies have shown only modest increase since this past June, Trepp reported. That changed in February, when the delinquency rate moved up 18 basis points to 3.12%, for the second largest increase since June 2020, when the pandemic caused delinquencies to spike. Only December 2021, with a 19-bp gain, saw a larger increase over the past 30 months, according to Trepp.

Year over year, the overall US CMBS delinquency rate is down 75 bps, Trepp said. Year to date, it’s up eight bps after January’s decline of 10 bps, which led to the second-lowest reading since the pandemic began.

The percentage of loans that are seriously delinquent (60+ days delinquent, in foreclosure, REO or nonperforming balloons) is now 2.88%, up six basis points for the month. The all-time high for overall delinquencies was 10.34% in July 2012, with the June 2020 reading only two bps lower.

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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 13-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 15-20 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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