The CMBS market continued to face challenges in 2024 with the overall Trepp CMBS Delinquency Rate climbing about 191 basis points throughout the year and the office rate reaching an all-time high of 11.01% in December. However, new issuance gave us cause for optimism as lending activity and liquidity picked up: CMBS Issuance surpassed $100 billion in 2024, nearly triple the year prior. As issuance rose throughout the year, a growing number of borrowers had difficulties paying off loans at maturity.
The mixed bag of results from this past year showcases the complexity of the CMBS market and the need for reliable data as it’s often more difficult to track the effects on an individual loan level in real time.
Source: CMBS Surveillance: Four Loans We Watched in 2024 & Signs of Optimism Despite Office Troubles
