CREFC's December 2024 Monthly CMBS Loan Performance Report

January 30, 2025

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

Key takeaways:   

DELINQUENCY RATE CONTINUES TO CLIMB

 

  • Conduit/SASB CMBS combined delinquency of 6.57% 
    • Delinquency rate increased 17 bps in December and 10 of 12 months in 2024
    • On a YOY basis, the overall combined delinquency rate is up 206 bps (6.57% vs. 4.51% in December 2023)
  • Office delinquency rate surged 63 bps in December to 11.01%, following a 101 bp increase in November
    • Before this, the highest office delinquency rate recorded was 10.70% in December 2012 
    • Office delinquency rate is up 519 bps YOY
      • Convergence of WFH demand shock, elevated rates (despite year-to-date Fed rate cuts), and a pullback in bank lending will continue to present office financing headwinds
  • December delinquency rate is still 375 bps below the 10.32% peak in June 2020 – the height of pandemic-related lockdowns
  • Loans in special servicing (SS) rose 36 bps to 9.89% in December and up 311 bps YOY
    • SS rate is at highest level since November 2020 – the last time the overall SS rate had breached 10%
  • In a report dated 1/10/25, BofA Global Research examined YTD pay-off trends for conduit loans
    • In one analysis, pay-off rates were calculated by property type and loan size; as shown below, successful pay-off rates decreased as loan size increased, with office loans facing the most significant challenges 
    • Among IO loans, only 56% of loans paid off, below the 63% across the overall sample; among amortizing loans, a much higher 82% paid off on time
*Source: Trepp. CMBS data in this report reflect a total outstanding balance of $626.1B: 56.1% ($351.2B) conduit CMBS, 43.9% ($274.9B) single-asset/single-borrower (SASB) CMBS.

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

Contact 

Raj Aidasani
Managing Director, Research
646.884.7566

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. © 2025 CRE Finance Council. All rights reserved.

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