The delinquency rate of office mortgages that have been securitized into commercial mortgage-backed securities (CMBS) spiked to 11.8% in October, the worst ever, and over a percentage point higher than at the peak of the Financial Crisis meltdown, according to data by Trepp , which tracks and analyzes CMBS.
CMBS are bonds that are sold to institutional investors around the world, such as bond funds, insurers, pension funds, REITs, etc. Banks that originated these mortgages are off the hook here, and investors eat the losses (see my discussion “Who is on the hook for CRE mortgages?” in the comments just below the article). https://wolfstreet.com/2025/11/01/office-cmbs-delinquency-rate-hits-record-11-8-percent-much-worse-than-financial-crisis-meltdown-multifamily-delinquency-rate-soars-to-7-1-percent/