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Office Sector Leads CMBS Delinquency Rise in October
The Trepp CMBS Delinquency Rate resumed its upward trend in October 2025, driven primarily by distress in the office sector. The rate increased by 23 basis points to reach 7.46%.
During the month, the total delinquent balance grew by $1.1 billion, hitting $44.6 billion, while the overall outstanding balance of commercial mortgage-backed securities dropped $3.2 billion to $598.1 billion. Both dynamics contributed to the jump in the delinquency rate.
All five major commercial property types experienced increases in delinquency. The office sector posted the largest gain, with its delinquency rate climbing 63 basis points to a new all-time high of 11.76%. This surpasses previous records set earlier in 2025, including 11.08% in June and 11.66% in August. This comes after office-sector delinquencies temporarily declined by more than 50 basis points the previous month.
Multifamily properties recorded the second-largest increase, with delinquencies rising 53 basis points to 7.12%. This marks the first time the multifamily sector has crossed the 7% threshold since December 2015.
Retail sector delinquencies rose by 15 basis points, lodging increased by 26 basis points, and the industrial sector edged up by 8 basis points, although it remained below the 1% mark.
Despite the spikes, the overall CMBS delinquency rate remains 288 basis points below the all-time high of 10.34%, which was recorded in August 2012.
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