T
he Mortgage Bankers Association (MBA) released its quarterly commercial real estate finance (CREF) Loan Performance Survey, showing a slight increase in delinquency rates for mortgages backed by commercial properties during Q3.

    The survey collected data on $2.6 trillion of loans as of September 30th, representing 56% of the total $4.7 trillion in commercial and multifamily mortgage debt outstanding. The results indicate that 96.8% of outstanding loan balances were current or less than 30 days late at the end of the quarter, a slight decrease from 97.0% the previous quarter.

    Delinquency rates increased for some property types, particularly office properties, while decreasing for industrial, lodging, and retail properties. Office property loan balances saw a significant increase in delinquency, with 7.8% being 30 days or more delinquent, up from 7.1% the previous quarter.

    CMBS loan delinquency rates remained flat at 4.8%, while other capital sources showed moderate non-current rates. MBA Vice President Jamie Woodwell noted that the commercial mortgage market is diverse and complex, with various factors affecting loan performance.