CMBS Delinquency Rate in USA Climbs to 7.03% in 2025
THE U.S. CMBS delinquency rate climbed to 7.03 percent in April 2025, a 38-basis-point increase from March, according to data from Trepp, a commercial real estate finance analytics firm. This is the first time the rate has surpassed 7 percent since January 2021.
The total balance of delinquent loans rose to $41.9 billion, up from $39.3 billion the previous month, driven largely by increases in multifamily and lodging delinquencies, the report said.
Multifamily delinquencies surged 113 basis points to 6.57 percent, continuing a steep climb that began in March, when the rate reached its highest level since 2015. The April increase was largely due to more than $1 billion in newly delinquent multifamily loans, while only $200 million were cured during the period.
The three largest delinquent multifamily loans accounted for $831 million, the report found.
Lodging followed with a 66-basis-point increase, pushing the sector’s delinquency rate to 7.85 percent, its highest level since February 2022. This marked the fourth consecutive month of rising delinquencies in the lodging segment.
The office sector also saw a notable rise, with delinquencies up 52 basis points to 10.28 percent, following three months of declines after a record high of 11.01 percent in December 2024.
In contrast, retail was the only major property type to show improvement, with its delinquency rate dropping 70 basis points to 7.12 percent. The industrial sector remained stable, declining 10 basis points to 0.50 percent.
Including loans past their maturity date but current on interest, the overall delinquency rate held steady at 8.37 percent, unchanged from March. The percentage of loans 30 days delinquent rose 16 basis points to 0.49 percent.
The share of seriously delinquent loans—those 60+ days past due, in foreclosure, REO, or non-performing balloon status—rose 22 basis points to 6.54 percent. Year-over-year, the U.S. CMBS delinquency rate is up 196 basis points from 5.07 percent in April 2024 and up more than 100 basis points from six months ago.
Among newer deals, the CMBS 2.0+ delinquency rate rose 41 basis points to 6.95 percent, with seriously delinquent loans up 25 basis points to 6.46 percent. CMBS 2.0+ refers to securities issued after the 2008 financial crisis with stronger underwriting standards and investor protections.
Excluding defeased loans, the CMBS 2.0+ delinquency rate would be 7.16 percent. If defeased loans were removed from the overall calculation, the headline delinquency rate would be 7.27 percent, compared to 6.86 percent in March.
The CMBS 2.0+ delinquency rates by property type showed mixed results in April, with lodging reporting a notable increase, rising 66 basis points to 7.77 percent.
A recent Lodging Econometrics report found the U.S. hotel pipeline at the end of the first quarter of 2025 totaled 6,376 projects and 749,561 rooms, a 5 percent year-over-year increase in projects and 6 percent in rooms.
