After falling for two consecutive months, the delinquency rate for commercial mortgage-backed securities (CMBS) loans increased to 6.65% in March, according to data released this week by Trepp.
The Trepp CMBS Delinquency Rate rose 0.35% last month from February’s 6.30% rate, bringing it close to its four-year high. The overall delinquent balance was $39.3 billion in March, up from $36.0 billion in February.
A primary driver of the increase was a 0.98% jump in delinquent commercial loans for the multifamily apartment sector, which reached 5.44% in March. The delinquency rate of that sector has now increased 1.84% over the past year.
Get these articles in your inbox
Sign up for our daily newsletter
Get these articles in your inbox
Sign up for our daily newsletter
The lodging sector also saw a steep climb, rising 0.76% last month to 7.19%. Industrial and retail delinquency rates were up 0.26% and 0.33%, respectively.
The office sector saw its month-over-month delinquency rate tick down slightly by two basis points to 9.76%.
The Trepp report notes that the percentage of seriously delinquent loans hit 6.32% in March, up 0.41% from the prior month.
