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Banks and CMBS See Higher Office Delinquencies

The sector continues to grind out bad news.

By Erik Sherman | November 19, 2024 at 06:55 AM

The latest semiannual Supervision and Regulation Report from the Federal Reserve has revealed that most banks have more than the required regulatory capital levels, with “generally … sound” asset quality. But there’s also less positive news on the CRE front — regarding office, in particular.

The Fed wrote that CRE lending credit performance “remains an area of concern.” The report looked at delinquency rates for industry loans. They include properties at least 90 days past due or those in nonaccrual status, which means formally restructured “ to ensure repayment and performance need not be maintained, by the Fed’s definition.

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