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Office Leads as CMBS Delinquencies Resume Upward Climb in October
Led by the office sector, the Trepp CMBS Delinquency Rate resumed its climb in October 2025, jumping 23 basis points to 7.46%. In October, the overall delinquent balance rose $1.1 billion to $44.6 billion, and the outstanding balance decreased $3.2 billion to $598.1 billion. Both contributed to the surge in the overall delinquency rate.
All five of the major property types saw increases in their respective delinquency rates. The largest rate increase was seen in the office sector, rising 63 bps in October to set a new all-time high of 11.76%, after retreating by more than 50 bps the month prior. Earlier this year, the office delinquency rate hit new record highs of 11.08% in June and 11.66% in August, both now eclipsed by October’s new peak.
The second-largest rate increase was in multifamily, which rose 53 bps to 7.12%. Delinquencies in this sector topped the 7% threshold for the first time since December 2015, according to Trepp.
Retail delinquencies rose 15 bps during October, while lodging rose 26 bps and industrial edged up by eight bps while remaining below 1%. Office notwithstanding, overall CMBS delinquencies for October were 288 bps below the all-time high of 10.34% set in August 2012.
