The latest data from Trepp shows October brought another wave of distress across the CMBS landscape, signaling that what began as an office-sector problem is now becoming a broader market challenge.

Widening cracks:

In October 2025, the overall CMBS delinquency rate climbed 23 basis points to 7.46%, driven by a $1.1 billion rise in delinquent loan balances (now $44.6 billion) and a $3.2 billion decline in total outstanding volume to $598.1 billion. The increase underscores that financial strain across commercial real estate is far from easing.

Office under renewed pressure:

Office loans once again led the decline, with delinquencies jumping 63 basis points to 11.76%—a new record high. The sector briefly improved in September before slipping back, surpassing previous peaks earlier in 2025 (June: 11.08%, August: 11.66%).

Multifamily joins the ranks:

Multifamily delinquencies also accelerated, climbing 53 basis points to 7.12%, breaching the 7% mark for the first time since late 2015. While the sector remains comparatively stable, the move upward is notable for an asset class long viewed as a safe haven.

Widespread stress:

Every major property type tracked by Trepp saw higher delinquencies in October, illustrating that distress is broadening. Although the share of newly delinquent (30-day) loans edged down slightly to 0.47%, the overall trajectory remains negative.

Market takeaway:

Office distress may still dominate the narrative, but the story is expanding. With multifamily and other sectors now showing cracks, the CMBS market appears to be shifting from isolated weakness to systemic stress—a reminder that the long-awaited market reset may still be underway.