Delinquency rates across commercial mortgage-backed securities (CMBS) rose meaningfully in September after edging lower the previous month, according to the latest figures from Trepp.

Notching its highest level since late 2020, the CMBS delinquency rate rose to 8.02% last month, the real estate analytics firm reported. The overall delinquency rate was 7.85% in August and 7.55% a year ago.

Though only one of the five major property types recorded an improvement in its delinquency rate in September, the catalyst for broadly weaker commercial performance was relatively concentrated, said Trepp.

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“Five large single-asset, single-borrower loans drove much of the increase,” the monthly report stated. Four of those turned to nonperforming status or transitioned to foreclosure in September after having missed maturity payoff dates earlier in the year.

Delinquencies across the office sector rose 16 basis points to 12.16%, below an all-time high of 12.34% recorded in January, according to Trepp. Office delinquency rates were a full percentage point higher than the 11.13% rate observed one year ago.

Only the retail sector saw improved delinquency rates from a year ago, declining 62 basis points to 6.58% compared to 6.76% last September.

Meanwhile, the multifamily delinquency rate bumped up 35 basis points to 8.04%, compared to 6.59% one year ago, and delinquencies across the lodging sector increased 34 basis points to 6.18%.

The industrial sector continued to significantly outperform its peer commercial real estate sectors, remaining unchanged over the month with a delinquency rate of 1.14%. That’s almost double the 0.56% level observed a year ago, however.

Industrial properties have benefited from a wave of AI-related investments, but they have also faced disruptions from years of sustained trade and supply-chain disruptions, most recently linked to energy shocks from the Iran war and Trump administration tariff policies.