Given the difficulties the office sector is facing as well as the nervousness underlying the financial sector, it might not surprise that Trepp found in the first quarter of 2023 higher delinquency rates, higher risk concerns, and slowdowns of originations, based on analysis of bank balance sheet loan data.

Total CRE mortgage delinquencies rose by 23 basis points from 0.80% in the last quarter of 2022 to 1.03% in the first quarter of this year. Serious delinquencies were also up by the same factor, from 0.55% in 2022 Q4 to 0.78% last quarter.

According to the Trepp report, the highest delinquency rate was in lodging, or hotel, properties. "The lodging sector has endured high delinquency rates due to the severe impact that the Covid pandemic had on the sector in 2020," the firm said. "Similarly affected by the pandemic, the retail sector also showed an uptick in 2020, though it was a more modest increase than what the lodging sector suffered."