Multifamily CMBS delinquency rate lower in February

Trepp reported that the delinquency rate for multifamily commercial mortgage-backed securities (CMBS) fell in February after rising last month. The overall CMBS delinquency rate also fell.

Overall CBMS delinquency rate drops

For delinquencies, Trepp focuses on loans that are 30 or more days delinquent. The current CMBS delinquency report provides data through February. 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 6.85 percent. The rate was down 9 basis points from last month’s reported rate but it is up 20 basis points from the rate reported 2 months ago. One year ago, the delinquency rate for CMBS loans on multifamily property was 4.46 percent.

The 239 basis point year-over-year rise in the delinquency rate on multifamily property is by far the largest for the property types tracked. The second largest year-over-year increase was for office property, whose delinquency rate rose 142 basis points.

Trepp found that the overall CMBS delinquency rate in February was 7.14 percent. The overall CMBS delinquency rate is up 84 basis points from its level of 6.30 percent 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 8.75 percent, down 39 basis points for the month and 73 basis points below its recent high in September. CMBS loans that are past their maturity date but still current on interest now represent 1.61 percent of loans outstanding.

The history of the overall and multifamily CMBS delinquency rates as reported by Trepp since February 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. While the delinquency rate rose rapidly during that period, it seems to have leveled out over the past few months.

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 while the other two saw declines.

The CMBS delinquency rate for office property fell 114 basis points to 11.20 percent while the rate for retail properties fell 74 basis points to 6.30 percent. On a year-over-year basis, the delinquency rate on office property climbed 142 basis points while that on retail property fell 119 basis points.

The delinquency rate on CMBS loans on lodging property loans rose this month, climbing 38 basis points to 5.94 percent. One year ago, the rate was 49 basis points higher at 6.43 percent.

The CBMS delinquency rate for industrial properties rose 5 basis points this month to 0.67 percent. It is up from a rate of 0.34 percent one year ago.

The full Trepp delinquency report can be found here.