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Office Leads as CMBS Delinquencies Increase in July
Office led the way as CMBS delinquencies increased in July, Trepp and Fitch Ratings said Friday. The Trepp CMBS delinquency rate rose 51 basis points to 4.41%, the highest level since December 2021, with increases in four of the five major property sectors.
Delinquencies in office-backed loans rose 46 bps and the rate for that segment is now 4.96%, Trepp said. The office delinquency rate is now up more than 350 bps since the end of 2022.
Fitch-rated CMBS saw a one-bp increase to 1.92% in July as the continued rise in office delinquencies was offset by strong hotel resolution volume.
New 60-day-plus delinquency volume of $816 million in July was below June’s volume of $887 million; the majority (83%; $676 million) were maturity defaults and primarily secured by office (50%; $404 million) and retail (37%; $302 million) loans, according to Fitch.
- ◦Financing
