Multifamily CMBS delinquency rate reaches new high in March

Trepp reported that the delinquency rate for multifamily commercial mortgage-backed securities (CMBS) rose in March, exceeding its previous high set last October. The overall CMBS delinquency rate also rose.

Overall CBMS delinquency rate higher

For delinquencies, Trepp focuses on loans that are 30 or more days delinquent. The current CMBS delinquency report provides data through March. 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 7.15 percent. The rate was up 30 basis points from last month’s reported rate. It is 3 basis points higher than the peak it reached in October 2025. One year ago, the delinquency rate for CMBS loans on multifamily property was 5.44 percent.

The delinquency rate on multifamily property rose by 171 basis points year-over-year. This is second only to the year-over-year increase for office property, whose delinquency rate rose 195 basis points.

Trepp found that the overall CMBS delinquency rate in March was 7.55 percent. The overall CMBS delinquency rate is up 41 basis points for the month and up 90 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 9.07 percent, up 32 basis points for the month and up 70 basis points from its level one year ago. CMBS loans that are past their maturity date but still current on interest now represent 1.52 percent of loans outstanding.

The history of the overall and multifamily CMBS delinquency rates as reported by Trepp since March 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.

Delinquencies rise for most property types

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

All of the property types saw their delinquency rates rise month-over-month except for industrial property. The CMBS delinquency rate for office property rose 51 basis points to 11.71 percent while the rate for retail properties rose 32 basis points to 6.62 percent. The delinquency rate on CMBS loans on lodging property loans jumped 137 basis points to 7.31 percent. However, the CBMS delinquency rate for industrial properties fell 2 basis points this month to 0.65 percent.

On a year-over-year basis, the delinquency rate on office property climbed 195 basis points while that on retail property fell 120 basis points. The delinquency rate on CMBS loans on lodging property was up 12 basis points while that on industrial property rose 5 basis points.

The full Trepp delinquency report can be found here.