The delinquency rate on Commercial Mortgage-Backed Securities (CMBS) for offices surged by 103 basis points in January, reaching a record 12.3%, which is 1.6 percentage points above the post-2008 Financial Crisis peak. This steep increase, part of a broader 600% surge in office CMBS delinquencies over the past three years, highlights the intensifying commercial real estate crisis. Contributing to this trend are ongoing remote work patterns resulting in higher office vacancy rates, and the strain of rising interest rates impacting borrowers across the sector. Meanwhile, the delinquency rate for multifamily CMBS reached 6.9%, the highest since December 2015, partly due to affordability issues that stress the multifamily housing market.
US commercial mortgage-backed securities delinquency rates hit record high
