[[{“value”:”
Trepp CMBS Delinquency Rate Inches Upward in June; Office Sector Hits New Peak
The Trepp CMBS Delinquency Rate ticked up five basis points in June, reaching 7.13%. The overall delinquent balance declined slightly to $42.3 billion, down from $42.6 billion in May. At the same time, the total outstanding balance decreased to $593.4 billion from $601.6 billion the previous month.
In contrast to May, when four of the five main property types saw declining delinquency rates, June brought increases in four sectors. Multifamily was the only category to show improvement, dropping by 20 basis points.
The office sector saw the largest increase, rising 49 basis points to 11.08%—a new record high. This surpasses its previous peaks of 11.01% in December 2024 and 10.70% in July 2012, underscoring the ongoing challenges facing the office market.
The lodging sector also saw a sharp reversal, with the delinquency rate climbing 42 basis points to 6.81% in June after a significant 150-basis-point drop in May. Trepp notes that the headline rate increase was primarily driven by a decrease in the overall balance, as the delinquent balance itself remained relatively stable.
These latest figures highlight continued turbulence in the commercial real estate-backed securities market, especially in the office and lodging sectors.
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