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.