July 12 (Reuters) – The delinquency rate among U.S. office loans rose in June, driven in part by increasing vacancies and elevated interest rates, according to recent reports from ratings agencies.
Echoing trends over the last two years, the higher interest rates have contributed to rising late payments and defaults on loans behind offices and other commercial real estate (CRE) properties so far in 2024.
The overall rate of delinquencies, or late payments, on loans behind commercial mortgage-backed securities (CMBS) rose to 2.45% in June from 2.42% in May, according to a report by Fitch Ratings released on Friday. The volume of 30-day delinquencies increased to $1.92 billion from $1.86 billion over the same period.