Office CMBS Delinquency Rate Climbs to 11.71% in March

The office Commercial Mortgage-Backed Securities (CMBS) delinquency rate rose by 51 basis points, reaching the second-highest level on record and moving above the 2012 post-crisis peak.

Summary

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Terms & Concepts
  • Commercial Mortgage-Backed Securities (CMBS): Structured debt products backed by pools of commercial property loans, including office buildings, retail centers, and hotels.
  • Delinquency rate: The share of loans that are overdue on required payments, often used as a stress indicator in credit markets.
  • Basis points: A unit equal to one-hundredth of a percentage point, commonly used to describe changes in interest rates or credit metrics.