Commercial Mortgage Delinquencies Near Record Levels

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Delinquency rates across commercial properties have shot up faster than at any other time.

As thousands of restaurants, hotels, and local businesses in the U.S. struggle to stay open, delinquency rates across commercial mortgage-backed securities (CMBS)—fixed income investments backed by a pool of commercial mortgages—tripled in three months to 10.32%.

In just a few months, delinquency rates effectively reached their 2012 peaks. To put this in perspective, consider that it took well over two years for mortgage delinquency rates to reach the same historic levels in the aftermath of the housing crisis of 2009.

This chart draws data from Trepp and illustrates the shocks to the CMBS market, broken down by property type.

Visualization type: Infographic

Commercial Mortgage Delinquencies Near Record Levels

Delinquency rates across commercial properties have shot up faster than at any other time.

As thousands of restaurants, hotels, and local businesses in the U.S. struggle to stay open, delinquency rates across commercial mortgage-backed securities (CMBS)—fixed income investments backed by a pool of commercial mortgages—tripled in three months to 10.32%.

In just a few months, delinquency rates effectively reached their 2012 peaks. To put this in perspective, consider that it took well over two years for mortgage delinquency rates to reach the same historic levels in the aftermath of the housing crisis of 2009.

This chart draws data from Trepp and illustrates the shocks to the CMBS market, broken down by property type.


First published: July 16, 2020 (link)

Source files included: .ai, .eps, .pdf

Data source: Trepp

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