The percentage of CMBS loans tied to office properties that have fallen behind on payments is at its highest level on record.
Roughly 11% of office buildings tied to CMBS loans were delinquent, beating the previous high watermark of 10.7% set during the Great Recession in December 2012, according to Trepp, which began tracking the CMBS sector in 2000.
More than $2B in office loans became freshly delinquent in December, causing a 63-basis-point increase in the overall delinquency rate, according to Trepp.
Office loan delinquency has nearly doubled over the past year, growing from 5.8% in December 2023. The sector has been the primary driving force behind the overall increase in distress in CMBS loans. Over the past year, the overall CMBS delinquency rate rose to 6.6% from 4.5% a year prior...
RSK: Unfortunately, I do not think it has bottomed out....we shall see what 2025 brings but maybe the 4th quarter will surprise us. It`s all about back to work to the office or not.
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- - Volume: 25 - WEEK: 2 Date: 1/7/2025 12:20:46 PM -