CMBS delinquency rates experienced consistent month-over-month increases throughout 2024, particularly in the latter half of the year. However, the early months of 2025 have shown signs of easing, with the market appearing less stressed compared to the previous year's trend.
As Moody’s wrote, delinquency rates kept increasing monthly, fueled by high interest rates, a “significant” percentage of maturities, slowing property revenue growth, and a continuing slow recovery for office properties.
Conduit delinquencies grew more than 50%, from 5.0% in 2023 to 7.61% in 2024. Office was the major factor in most increases in overall conduit delinquency last year, but it increased by only 18 basis points in January after an average monthly increase of 50 basis points in 2024.
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