In its look at November 2024 CMBS delinquency, Trepp has calculated that the overall delinquency rate rose 42 basis points to 6.40%. Office, multifamily, and lodging all saw “substantial increases.”

A growing delinquency rate has been a problem for a while, as the firm has tracked and reported. But something in the update was important to notice — that office, multifamily, and lodging properties were “largely responsible” for the increase. One thing that GlobeSt.com confirmed with Trepp: “Delinquency rates are based on dollar values, not solely the number of loans in trouble.”

Trying to understand the state of loans from CMBS alone is difficult. The loan type is far from representative of all lending, and gives a biased view, although a publicly available one, which is better than nothing. The other issue is the dollar measurement because a few large deals going badly are enough to shift the overall balance of performance.