Two sectors posted a mild improvement, helping drive an overall drop in the delinquency rate
The overall delinquency rate for US commercial mortgage-backed securities (CMBS) edged lower in April, driven by a modest improvement in lodging and retail even as several large loans across office, multifamily and industrial turned newly delinquent.
Trepp’s latest CMBS Delinquency Report shows the headline delinquency rate slipped by one basis point to 7.54% in April 2026. The small move masks some sizable shifts beneath the surface, particularly among a handful of large loans that moved into delinquent status during the month.
According to Trepp, the five largest newly delinquent loans together accounted for just over $1.26 billion of the roughly $2.63 billion of loans that became delinquent in April. Those included a Houston office loan, a New York City office loan, a San Francisco multifamily loan, a New York City multifamily loan, and a national warehouse and distribution portfolio.
April also marked a break from the recent pattern that had seen non‑performing matured balloon loans dominate the newly delinquent list.
Of all loans that became delinquent during the month, 42% were classified as non‑performing matured balloons, while 40% were 30-days delinquent. The remainder were in foreclosure or real estate owned (REO). Across the newly delinquent universe, non‑performing matured balloon remained the single most common delinquency classification, in line with prior months.
At the property-type level, two of the five major sectors recorded rising delinquency rates in April while three posted declines.
Industrial saw a modest increase, with its delinquency rate rising 31 basis points to 0.96%. Trepp attributed that move largely to a single portfolio loan that went 30 days delinquent during the month. Multifamily delinquencies also moved higher, climbing 56 basis points to 7.71% and pushing above last month’s high-water mark. That increase was driven primarily by the two large multifamily loans in San Francisco and New York City that went 30 days delinquent.
On the downside, lodging recorded the largest improvement among the major property types. The sector’s delinquency rate fell 79 basis points to 6.52%, reversing an increase seen in March. Trepp noted that two large lodging loans shifted to “performing, matured balloon” status from non‑performing, helping to pull the overall lodging rate lower.
Retail also improved slightly, with its delinquency rate ticking down 31 basis points to 6.31%. That move was aided by two premium outlet loans that similarly transitioned to performing matured balloons.
Office, the most closely watched sector in the current environment, was largely unchanged month over month. The office delinquency rate slipped by two basis points to 11.69%, leaving it elevated but broadly in line with March.
Trepp’s headline figure does not include loans that are past their maturity date but current on interest and categorized as performing matured balloons. If those loans were added to the mix, the delinquency rate would have registered 9.06% in April, down one basis point from March.
That broader measure sits 152 basis points above the 7.54% headline rate and underscores the continuing impact of looming and passed maturities on overall CMBS performance.
The seriously delinquent rate – defined as loans 60 or more days delinquent, in foreclosure, REO, or non‑performing balloons – also inched lower. That metric slipped to 7.27% in April from 7.29% the prior month. The share of loan balance in the 30‑day delinquent bucket was essentially unchanged at 0.27%, compared with 0.26% in March.
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