Trepp: Multifamily CMBS delinquencies, servicing rates fell in September

Group 1 - The Trepp CMBS delinquency rate for commercial real estate decreased by six basis points to 7.23% in September after six months of increases, with retail being the only sector to see an increase in delinquency rates [3][4] - Lodging delinquency rates fell by 73 basis points to 5.81%, the lowest since March 2024, while office rates dropped 53 basis points to 11.13%, still an all-time high prior to last month [4] - CrediQ reported a decline in overall CRE delinquency rates from 9.44% in August to 8.59% in September, with specially serviced loans also decreasing from 10.95% to 10.63% [5] Group 2 - Office properties are identified as the primary source of distress in the market, followed by multifamily properties, while industrial properties maintain the lowest delinquency rate [6] - The Milestone Group closed a $1.1 billion fund in September, targeting undercapitalized and undermanaged properties with growth potential [6][7] - Delinquency rates for apartment CMBS decreased by 27 basis points to 6.59% in September, although this remains nearly double the rate of 3.33% from September 2024 [8]