CREFC's February 2024 Monthly CMBS Loan Performance Report

March 28, 2024

CRE Finance Council has released a report on CMBS loan performance for February.*

Key takeaways:


  • Conduit/SASB CMBS combined delinquency of 4.71%
    • Delinquency rate rose 5 bps in February, following a jump of 15 bps in the month prior
    • On a YOY basis, the overall combined delinquency rate is up 159 bps (4.71% vs. 3.12% in February 2023)
  • Delinquencies in the heavily watched office sector experienced another large increase in February
    • Office delinquency rate jumped 33 bps to 6.63% in February, following a move of 48 bps in the prior month, and is 425 bps higher on a YOY basis
    • Convergence of work-from-home (WFH)-induced demand shock, high benchmark, mortgage, and cap rates, and a pullback in bank lending will continue to present office headwinds
  • Delinquency rate is still 561 bps below 10.32% peak in June 2020 – the height of pandemic-related lockdowns. Clearly, the situation today with limited office demand and higher rates suggests perhaps a less benign outcome for certain office loans.
  • Loans in special servicing (SS) rose to 7.14% in February; up 19 bps from prior month and 196 bps higher on a YOY basis
    • As per servicers, loans transferring to SS mostly related to current market dynamics; office loans dominate new entries
    • Servicers say most loans with COVID-related forbearances have returned to original loan terms and are performing as expected
    • Loans still in forbearance or modified are generally paying as required
  • Delinquency and SS rates for SASB continue to climb
    • SASB delinquency rate of 4.17% in February vs. 1.86% in year prior; SASB SS rate of 7.15% vs. 4.29% in year prior. SASB distress driven by floating-rate loans challenged with securing new interest-rate cap and swap agreements at higher strike rates and continued challenges in the office sector (much of which is financed by SASB CMBS).
    • Conduit delinquency has also climbed but at more measured pace: 5.08% delinquency vs. 3.97% in year prior; 7.14% SS vs. 5.78% in year prior
  • Loans in-foreclosure and REO asset rates remain low at 1.22% and 0.87%, respectively
    • Office delinquency and SS rates will continue to increase as more loans with near-term maturity dates have difficulty refinancing; foreclosure and REO rates expected to trend upward as a result

*Source: Trepp. CMBS data in this report reflect a total outstanding balance of $606.2B: 58.9% ($356.8B) conduit CMBS, 41.1% ($249.5B) single-asset/single-borrower (SASB) CMBS.


Click here to download the full report. Contact Raj Aidasani for more information on CMBS loan performance.


Raj Aidasani
Managing Director, Research

The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2023 CRE Finance Council. All rights reserved.

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