Commercial Real Estate Delinquency Rates Increase in 4th Quarter

The sector is a key concern for financial stability, according to a Treasury oversight council.

The setting sun is reflected on the skyline of midtown Manhattan, New York City, as seen from across the Hudson river, in Weehawken, N.J., on March 22, 2023. Leonardo Munoz by AFP via Getty Images

Mortgage delinquency rates for U.S. commercial properties rose in the fourth quarter of 2024 from the previous quarter. The Mortgage Bankers Association (MBA) published the latest figures as commercial loans worth almost $1 trillion are set to mature this year.

The state of commercial real estate is a key economic indicator. If the sector is under stress, it can trigger a chain of loan defaults, creating challenges for the financial system and posing a risk of broader economic decline.