📝CRE360 Take:
Trepp’s August update shows the overall CMBS delinquency rate rising to 7.29%, the sixth straight monthly increase. Office delinquencies hit a record 11.66%, while multifamily climbed to 6.86%, a nine-year high. Retail delinquencies improved to 6.42%, their lowest in a year, and hotel rates held steady.

CRE360 underscores causes the report doesn’t unpack: multifamily distress is tied to floating-rate maturities, while retail improvement stems from distressed mall loans already flushed out. Geographic concentration in troubled office markets is missing. Forward-looking metrics like special servicer transfers are absent, leaving investors without an early-warning lens.

Signal: avoid office credit, watch multifamily, chase retail/hotel debt. Office distress has no clear bottom. Multifamily distress may peak soon, creating distressed-debt entry opportunities. Retail and hotel CMBS show recovery signals worth targeting. Defense first, with selective offense.

Publisher Credit:
Full report: Trepp — CMBS Delinquency Rate Increases Again, August 2025