CMBS Delinquency Falls in September After 6 Months of Increases

CMBS delinquency eased to 7.23% in September, the first decline since February, led by office cures while retail rose.

October 3, 2025

Overall CMBS delinquency fell to 7.23% in September (–6 bps m/m), the first drop since February.
Office drove improvement: $2.1B in cures vs. $1.3B new delinquencies; the office rate slid to 11.13% (–53 bps m/m).
Retail was the outlier, rising 34 bps to 6.76% after two months of declines.rn
Delinquent balance fell to $43.5B with $3.9B in cures outpacing $3.7B new delinquencies.rn

Key Takeaways

The Trepp CMBS Delinquency Rate ticked down to 7.23% in September 2025, breaking a six-month upswing and marking the first monthly decline since February, as reported by Trepp.

pERCENTAGE OF CMBS MARKED AS 30+ DAYS DELINQUENT

What Changed This Month

Cures beat out new trouble. Roughly $3.9B of loans cured versus $3.7B that turned delinquent, nudging the headline lower. The office sector did the heavy lifting with $2.1B in cures vastly outweighing new delinquencies.

Meanwhile, the total delinquent balance slipped to $43.5B on an outstanding balance of $601.3B—both down from August.

Sector Snapshot

Office: 11.13% (–53 bps m/m). Still elevated by historical standards despite improvement.
Lodging: 5.81% (–73 bps), its lowest since March 2024.
Multifamily: 6.59% (–27 bps), nearly double last year’s 3.33%.
Industrial: 0.56% (–4 bps). Still lowest among major types.
Retail: 6.76% (+34 bps), the only category to worsen in September.

By volume, mixed-use and retail posted net increases in delinquency (≈$1B and $500M respectively), while lodging saw cures of $800M vs. $200M of new issues.

Under The Hood

Seriously delinquent (60+ days, FC, REO, non-performing balloon): 6.75% (–13 bps m/m).
30-day bucket: 0.48% (+7 bps m/m).
Excluding defeased loans, headline would be 7.43% (–5 bps m/m).
If you include performing matured balloons, headline jumps to 9.48% (+17 bps m/m).

CMBS 2.0+ Check-In

Within post-crisis deals, the delinquency rate also edged down to 7.14% (–6 bps), with serious delinquencies at 6.66% (–13 bps). Ex-defeased, 7.31% (–6 bps). By type: Office 11.02% (–50 bps), Retail 6.45% (+35 bps), Lodging 5.74% (–73 bps), Multifamily 6.60% (–26 bps), Industrial 0.56% (–4 bps).

Why It Matters

A modest retreat in the headline rate is encouraging, but composition counts: retail weakness and elevated office delinquency keep overall stress high. On a year-over-year basis, the headline is still +153 bps, and sits above levels from six months ago.