{"content":"The delinquency rate for office Commercial Mortgage-Backed Securities (CMBS) just hit an alarming milestone, climbing to a record 11.8 percent in October. That’s a jump of 63 basis points in a single month and now stands more than one full percentage point above the post-2008 financial crisis peak of 10.7 percent. The data paints a concerning picture of the commercial real estate market, which has been under pressure since remote work reshaped demand for office space. The rise in delinquencies has been steady since October 2022 as property owners struggle with refinancing challenges, higher interest rates, and weaker tenant demand. Many office buildings in major cities remain partially vacant, forcing landlords to renegotiate leases at lower rates or face defaults on their loans. Analysts say the situation could worsen in the coming quarters as a wave of commercial loans approaches maturity. With borrowing costs still high and valuations falling, many owners may be unable to refinance on reasonable terms, pushing delinquency rates even higher. This marks the highest stress level in the office loan sector in more than two decades. The last time delinquencies spiked this severely was during the global financial crisis, followed by the 2016 oil bust but today’s situation looks more systemic, as hybrid work continues to transform how companies use office space. The trend serves as a warning for banks and investors alike: the commercial real estate market is entering uncharted territory, and office debt could become one of the biggest economic headwinds heading into 2025. #RealEstate #Markets #Finance ","images":["https://d35imkjvkj28kt.cloudfront.net/uploadfile/article/blog/2025112025/11/04/7ccb5e40438447d6ad69a97f6467505a.png"],"tags":[],"tradingPairs":[],"quotearticleid":0}