CMBS delinquencies climb again

Office delinquency climbed to 11.71% after a 51‑basis‑point increase, while multifamily rose 30 basis points to 7.15%, edging past its October 2025 high watermark.

Industrial remained comparatively resilient at 0.65%.

Trepp also highlighted the role of loan maturities in driving distress. If loans that passed maturity but remained current on interest were included, “the delinquency rate would register 9.07%, up 32 basis points from February,” the report said, with non‑performing matured balloons the most common classification among newly delinquent loans.

Roughly 40% of March’s newly delinquent loans have been performing matured balloons a month earlier, underscoring how many borrowers are struggling to refinance on time.

Market participants have been warning that delinquencies are building. In a 2025 interview with Mortgage Professional America, Nathan Cohen, head of CRE at LBC Capital Income Fund, said “the issue of delinquencies [was] smoldering” and “going to be a massive problem,” pointing in particular to the lodging and warehouse sectors as areas to watch.