CRED iQ’s distress rate, a composite metric capturing loans 30+ days delinquent (or worse) and those in special servicing, came in at 11.1% in the latest reporting period.
The CRED iQ research team analyzed the payment status of approximately $59 billion in distressed CMBS loans. The core objective of our research was to achieve a clear view of the current state of payment status reasons and associated near-term trending.
We wanted to learn more about the underlying data. Let’s see what they found.
Distress Rate Trends
The commercial mortgage-backed securities (CMBS) distress rate added 32 basis points to 11.1% in July, according to CRED iQ’s latest analysis. This increase follows last month’s 20 BPS decrease, and the previous month’s 70 BPS increase.
The underlying metrics also saw modes increases. Our delinquency rate increased by 52 basis points to 8.7% and our special service rate added 23 BPS to 10.3%.
Payment Terms
As part of our research, our team explored each payment status reason from a historical perspective. We wanted to understand the trending/evolution of each category dating back to February of 2024. Our team built a heat map which reveals trends for each category, to potential argument current forecasting models.
- Current Loans: $9.1 billion (15.5%) in loans were current in July, down $327.4 million from the June print of $9.4 billion (16.2%)
- Late Loans: $3.8 billion (6.4%) of loans are late but not yet delinquent, down from $4.8 billion (8.2%) last month
- Delinquent Loans: $10.3 billion (17.5%) of loans are 30+ days delinquent, down from $11.7 billion (20.1%) in June
- Matured Loans: $35.8 billion (60.6%) in CMBS loans have passed their maturity date (up from $32.4 billion last month). Of these, 21.7% are performing (up from 18.5%), while 38.9% are non-performing (up from 37.0%)
Loan Highlight
Two Chatham Center & Garage is a mixed use property consisting of 290,501 SF office property and a 2,284-space parking garage in the greater downtown submarket of Pittsburgh. The asset is backed by a $50.1 million fully amortizing loan that failed to pay off at its July 2025 maturity date, has a performing matured payment status. The loan was added to the servicers watchlist in October 2020 due to low DSCR and occupancy. The asset was 35% occupied with a 1.13 DSCR as of March 2025.
CRED iQ’s Methodology: A Comprehensive Approach
CRED iQ’s distress rate provides a holistic view of CMBS performance by combining delinquency (30+ days past due) and special servicing activity, including both performing and non-performing loans that fail to pay off at maturity. Our analysis focuses on conduit and single-borrower large loan structures, while separately tracking Freddie Mac, Fannie Mae, Ginnie Mae, and CRE CLO metrics. This granular approach ensures CRE professionals have a clear, actionable understanding of market dynamics.
Informed with CRED iQ
As the CRE sector continues to adapt to macroeconomic shifts, CRED iQ’s comprehensive analytics offer a critical resource for decision-makers. For a deeper dive into our data or to discuss how these trends impact your portfolio, contact our team today. Stay tuned for our next update, where we’ll continue to track the metrics driving the CMBS market.
For more information, visit CRED iQ or reach out to our research team.
About CRED iQ
CRED iQ is a market data provider that offers a robust suite of data and software solutions tailored for commercial real estate and finance professionals.
With over $2.3 trillion of CRE loans, CRED iQ delivers instant access to a comprehensive range of financial data and analytics for millions of properties in every market. CRED iQ’s data and analytical capabilities are instrumental in helping investors, lenders and brokers make informed and strategic decisions critical to their business.
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