The CRE Crisis Isn’t Coming, It’s Here

The latest data from Trepp show the delinquency rate for office-backed CMBS loans has surged to 11.8%, topping the peak seen during the financial crisis—a clear sign of distress in the office sector. For multifamily CMBS, the rate has climbed to 7.1%, the worst mark since late 2015, as even rental housing is feeling capital-market pressure.

The magnitude of the office crunch is striking. A jump from just 1.8% in October 2022 to 11.8% today reflects dramatic shifts: remote work stickiness, overbuilt space, and ballooning maturities. For lenders, investors and owners this marks a turning point: what was once viewed as manageable is now baked into portfolios as measurable risk...

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RSK: I do not think this will seriously affect our market area, but looking like there will be many a CRE Mortgage delinquency and foreclosures coming nationwide, esp[especially in office and multifamily.