Office led the way as CMBS delinquencies increased in July, Trepp and Fitch Ratings said Friday. The Trepp CMBS delinquency rate rose 51 basis points to 4.41%, the highest level since December 2021, with increases in four of the five major property sectors. 

Delinquencies in office-backed loans rose 46 bps and the rate for that segment is now 4.96%, Trepp said. The office delinquency rate is now up more than 350 bps since the end of 2022. 

Fitch-rated CMBS saw a one-bp increase to 1.92% in July as the continued rise in office delinquencies was offset by strong hotel resolution volume. 

New 60-day-plus delinquency volume of $816 million in July was below June’s volume of $887 million; the majority (83%; $676 million) were maturity defaults and primarily secured by office (50%; $404 million) and retail (37%; $302 million) loans, according to Fitch. 

The post Office Leads as CMBS Delinquencies Increase in July appeared first on Connect CRE.

Gillian Executive Search is a leaderin Commercial Office Development, Financing, Design and Construction recruiting.