Dive Brief:

• Multifamily commercial mortgage-backed securities loan delinquencies for apartments fell 46 basis points to 6.57% in May, according to a report from Trepp. A year ago, it was 1.70%.
• The multifamily CMBS special servicing rate fell 17 bps to 8.42% in May, according to Trepp. A year ago, it was 5.43%. 
• The picture wasn’t as good for commercial real estate as a whole in May, as issues in the office sector drove the monthly rates up. Commercial real estate delinquencies ticked up 5 bps to 7.08% in May, while the special servicing rate increased 13 bps to 10.30% in May, according to Trepp.

Dive Insight:

CRED iQ’s distress rate also showed an uptick in CRE problem loans, which rose from 10.3% in April to 11.0% in May. Rates had fallen for the previous three months.

The delinquency rate rose by 40 basis points to 8.4%, while CRED iQ’s special service number increased by 30 bps to 10.2%.

The Mortgage Bankers Association’s first-quarter Commercial Delinquency Report, which examined rates for commercial banks and thrifts, CMBS, life insurance companies, Fannie Mae and Freddie Mac, also found that delinquencies increased in the first quarter. 

“Commercial mortgage delinquencies rose across all major capital sources in the first quarter of 2025, reflecting growing pressure on certain property sectors and loan types,” said Reggie Booker, MBA’s associate vice president of commercial real estate research, in a news release published earlier this month. 

However, MBA’s numbers show that one investor group faced the most stress. “While delinquency rates remain relatively low for most investor groups, the uptick in CMBS delinquencies signals heightened stress in parts of the market that lack refinancing options or other challenges,” Booker said. 

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