Office Cmbs Delinquency Rate Climbs to 12.3%

The delinquency rate on office loans packaged into commercial mortgage-backed securities climbed to 12.3% in October, the highest of any property type, according to Trepp data reported by CRE Daily. Yet the overall CMBS delinquency rate fell to 7.87% that same month, down from 8.02% in September, after a large loan returning to current status masked the deterioration concentrated in office towers. Banks and bondholders with office exposure, including lenders like $WFC, are watching that stress concentrate rather than spread across the broader commercial mortgage market.