Multifamily CMBS delinquency rate higher in June

Trepp reported that the delinquency rate for multifamily commercial mortgage-backed securities (CMBS) rebounded in June after last month’s decline. However, the overall CMBS delinquency rate fell, declining 20 basis points.

Overall CBMS delinquency rate declines

For delinquencies, Trepp focuses on loans that are 30 or more days delinquent. The current CMBS delinquency report provides data through June. While it only looks at CMBS loans, it breaks out results by the type of property covered by the loans.

The delinquency rate for loans on multifamily property was 7.23 percent. The rate was up 28 basis points from last month’s reported rate, but is still 48 basis points below the high it reached 2 months ago.

Multifamily property saw the largest year-over-year delinquency rate rise of the property types tracked by Trepp. One year ago, the delinquency rate for CMBS loans on multifamily property was 132 basis points lower at 5.91 percent.

Trepp found that the overall CMBS delinquency rate in June was 7.35 percent. The overall CMBS delinquency rate is down 20 basis point for the month. However, the rate is up 22 basis points from its level of one year ago.

The report noted that loans that are past their maturity date but are still current on their interest payments are not counted as being delinquent. However, if they were included, the overall delinquency rate on CMBS loans would be 9.53 percent, a new multi-year high. It is up 36 basis points for the month and up 82 basis points from its level one year ago. CMBS loans that are past their maturity date but still current on interest now represent 2.18 percent of loans outstanding.

The history of the overall and multifamily CMBS delinquency rates as reported by Trepp since June 2020 is illustrated in the chart, below. The chart also shows the linear-fit trend line for the multifamily CMBS delinquency rate from April 2024 to October 2025, a period when the delinquency rate was rising rapidly. While the current multifamily CMBS delinquency rate is not rising as rapidly as it did during that period, it still seems to be trending upward.

Some up, some down

The other property types whose CMBS delinquencies were examined by Trepp were industrial, lodging, office and retail.

Two of the property types saw their delinquency rates rise month-over-month while two of them saw their rates fall. The CMBS delinquency rate for retail properties rose the most this month, climbing 30 basis points to 6.91 percent. The rate for office properties crept 4 basis points higher to 11.57 percent. The delinquency rate for industrial property was lower this month, falling 11 basis points to 1.20 percent. The rate for CMBS loans on lodging property took the biggest fall, dropping 79 basis points to 5.22 percent. That is the lowest reading for this rate since November 2023.

On a year-over-year basis, the delinquency rate on industrial property climbed 69 basis points while that on office property rose 49 basis points. The delinquency rate on CMBS loans on retail property fell 15 basis points while that on lodging property plunged 159 basis points.

The full Trepp delinquency report can be found here.