2023: CMBS Delinquency Rates Unleashed!

January 2, 2024
1 min read

The Trepp CMBS Delinquency Rate fell modestly in November 2023, with an overall rate of 4.58 percent. However, there were significant changes within specific property types. The delinquency rate for industrial loans tumbled due to one large delinquent loan that flipped back to current status. However, delinquencies in the office segment rose by 33 basis points to 6.08 percent. Trepp has not included delinquent loans past their maturity date but current on interest payments in its headline delinquency rate, but there is a growing trend among borrowers to forego extension options. If these loans were included, the delinquency rate would be 5.58 percent, up 10 basis points from October.

In September 2023, the Trepp CMBS Delinquency Rate rose due to a sharp increase in office delinquencies. Overall, the delinquency rate rose 14 basis points to 4.39 percent. Office delinquencies rose by 51 basis points to 5.58 percent.

In August 2023, the delinquency rate for CMBS rose again, with the office segment experiencing a significant increase. Overall, the delinquency rate rose 16 basis points to 4.25 percent. Office delinquencies rose by 11 basis points to 5.07 percent.

In July 2023, the CMBS delinquency rate reached its highest level since December 2021, with increases across four of the five major property segments. Overall, the delinquency rate rose 51

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