CREFC's May 2025 Monthly CMBS Loan Performance Report
June 30, 2025
CRE Finance Council has released a report on CMBS loan performance for
May.*
Key takeaways:
DELINQUENCY RATE INCHES UP
- Conduit/SASB CMBS combined delinquency of 7.08%
- Delinquency rate increased 5 bps in May
- Third consecutive monthly increase; follows increases of 38 bps and 35 bps in April and March, respectively
- On a YOY basis, the overall combined delinquency rate is up 211 bps (7.08% vs. 4.97% in May 2024)
- Multifamily delinquency rate declined by 46 bps in May to 6.11%
- Multifamily rate is still 441 bps higher than it was one year ago
- Hotel loans saw a large decrease in delinquency, down 146 bps to 6.39%
- Office delinquency rate rose 31 bps in May to 10.59% and remains the highest delinquency rate of all property types
- Overall May delinquency rate still 324 bps below the 10.32% peak in June 2020 – the height of pandemic-related lockdowns
- Loans in special servicing (SS) increased 13 bps to 10.30% in May; SS rate has increased in 15 of the last 18 months and is up 209 bps YOY
- BofA analyzed conduit loan repayment trends by original maturity year and found growing signs of stress
- Elevated interest rates and slowing cash flow growth are already impairing borrowers’ ability to refinance
- So far, 2025 has posted the lowest repayment rate since the GFC
*Source: Trepp. CMBS data in this report reflect a total outstanding balance of $634.3B: 54.7% ($347.1B) conduit CMBS, 45.3% ($287.2B) single-asset/single-borrower (SASB) CMBS.