According to a new report from the Mortgage Bankers Association, delinquency rates for commercial and multifamily properties increased slightly during the third quarter of 2024.
The MBA’s latest commercial real estate finance (CREF) Loan Performance Survey found that 96.8 percent of outstanding loan balances were current or less than 30 days late at the end of the quarter, down from 97 percent in the second quarter. Mortgages that were 90 or more days delinquent were up to 2.7 percent, where they had been 2.5 percent. Less than 1 percent (0.3 percent) were between 30 and 90 days delinquent, up from 0.2 percent for 60-90 days delinquent, and down from 0.4 percent for 30-60 days delinquent in the previous quarter.
“Delinquency rates for commercial mortgages backed by office properties continued to increase during the third quarter but declined for loans backed by lodging, retail and industrial properties,” Jamie Woodwell, MBA’s Head of Commercial Real Estate Research, said. “The commercial mortgage market is large and diverse, covering a range of property types, sizes and ages, geographic markets and submarkets, borrower types, vintages and more. Each of those differences is affecting loan performance, some to the good and some to the bad.”
The survey found that 7.8 percent of office property loan balances were 30 days or more delinquent, up from 7.1 percent; while 5.6 percent of lodging loans were delinquent, down from 5.8 percent.