Delinquencies for commercial real estate mortgages climbed in the third quarter of 2024, but not all sectors felt the same pain. Loans backed by office and multifamily properties saw upticks in late payments, while delinquency rates for retail, industrial, and hotel properties fell, according to the Mortgage Bankers Association's latest Loan Performance Survey.

Overall, 96.8% of outstanding loan balances were current or less than 30 days late at the end of Q3, down slightly from 97% in the previous quarter. The percentage of commercial mortgages classified as delinquent for more than 90 days or in Real Estate Owned (REO) status increased by 20 basis points to 2.7%.

"Some property owners are facing increasing challenges with their mortgage payments," said Jamie Woodwell, MBA's head of commercial real estate research. "Loan performance is being impacted by a variety of factors, some positive and some negative, depending on the property type and market."