Volume CMBS Delinquency Increased 49.4% During Through October & Office Delinquency Rate was Up 261%

The volume of delinquent Commercial Mortgage-Backed Securities (CMBS) rose by 49.4% over 10 months through October, reaching $27.91 billion, or 5.07% of the total CMBS market. This spike is mainly due to a 261% increase in office sector delinquencies, with $9.59 billion in loans now late. Factors include declining office occupancy rates and the high cost of interest-rate cap agreements for loans with floating rates. Rising interest rates are also significantly affecting residential mortgage payments.