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CMBS Delinquency Reaches Another Post-Recession Low

The CMBS delinquency rate has reached a post-financial crisis low once more, falling 16 basis points to 2.66% in May, said Trepp. The delinquency rate has decreased by 146 bps year over year and declined in 20 of the past 23 months since June 2017.

“The CMBS market has remained remarkably resilient in the face of recent volatility,” said Manus Clancy, Trepp senior managing director. “Spreads have widened, but only minimally, even though tariffs and trade rhetoric have taken their toll on other markets.”

May’s largest rate drop among major property sectors belonged to retail, with its delinquency reading dropping 33 bps to 4.29%. Conversely, multifamily delinquencies climbed 17 bps to 2.16% last month.

The lodging delinquency reading dropped 13 bps to 1.42%, and it remains the best performing major property type—a distinction it inherited from multifamily. The office delinquency rate also fell by 13 bps to 2.98%.


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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).

  • ◦Economy
  • ◦Financing
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