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**Office Sector Drives Rise in CMBS Delinquencies in September**
Fitch Ratings reported that the overall U.S. commercial mortgage-backed securities (CMBS) delinquency rate rose to 3.10% in September, up from 3.00% in August. The increase is primarily attributed to a spike in new office sector delinquencies and a decline in loan resolutions.
In September, new loans delinquent by 60 days or more totaled $2.05 billion—up from $1.69 billion the previous month. Of this volume, the office sector accounted for the largest portion, representing 51% or $1.04 billion in new delinquencies. Following office, the multifamily sector comprised 18% ($370 million), retail made up 11% ($232 million), and mixed-use properties accounted for 7% ($144 million).
Maturity defaults represented 51% ($1.05 billion) of the new delinquencies, while term defaults accounted for the remaining 49% ($996 million).
Resolution activity slowed notably in September. The total volume of loan resolutions dropped to $964 million, compared to $2.18 billion in August. Of the resolved loans, $799 million were brought current. An additional $165 million in loans, which had previously been over 60 days delinquent, were downgraded to 30-day delinquency status and removed from Fitch’s delinquency index.
The rise in delinquencies—especially within the office sector—highlights ongoing challenges in the commercial real estate market as it continues to navigate economic uncertainty and evolving demand trends.
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