CMBS delinquency rates rise in April

Last month, the rates of commercial-backed mortgage securities that were delinquent ticked up 38 basis points, to 7.03 percent, according to a report from data firm Trepp.

This rate hasn’t passed 7 percent since January 2021.

Leading the delinquent CMBS loans were the multifamily and lodging sectors, as multifamily loan delinquency rose to 6.57 percent, a monthly increase of 113 basis points, on the heels of $1 billion worth in newly delinquent multifamily loans. Lodging loans saw its fourth straight month of increases, as the delinquency rate grew by 66 basis points to 7.85 percent. This is a three-year high.

As for the office sector, the delinquency rate climbed to 10.28 percent, or by 52 basis points.

Loan delinquency rates did not rise for the retail and industrial sectors. For retail, it dropped to 7.12, by 70 basis points, and for industrial, it fell to 0.5 percent, or 10 basis points.

The total balance of delinquent loans was $41.9 billion, about 6.6 percent higher than the month before.