The delinquency rate1 among KBRA-rated U.S. private label commercial mortgage-backed securities (CMBS) increased to 7.9% in October from 7.7% in September. The distress rate—the total delinquent plus current but specially serviced loan rate—also climbed slightly to 10.9% from 10.7% last month. The multifamily distress rate—the third highest among major property types—jumped 60 basis points (bps) to 10.5%, while the conduit multifamily delinquency rate increased 97 bps month-over-month (MoM) to 7.2%, largely due to the Park West Village loan ($254 million in six KBRA-rated conduits including $66.5 million in rake certificates in BBCMS 2022-C17) falling delinquent in October. The office delinquency rate dipped 7 bps, while its distress rate rose slightly (+6 bps).
In October, CMBS loans totaling $1.7 billion were newly added to the distress rate, of which 43.2% ($733.7 million) involved imminent or actual maturity default. The multifamily…