At the same time, delinquencies in core CRE loans are on the rise. In total, they reached $31.4 billion in the first quarter, representing a 1.70% overall delinquency rate. Of this amount, $25.1 billion—about 80%—are loans at least 90 days past due. Another $6.3 billion, or 20%, are between 30 and 89 days delinquent, according to CRED iQ.
Despite these challenges, there is a glimmer of optimism for core CRE. Net losses in this segment declined to $3.9 billion in the first quarter, down from $5.9 billion in the previous quarter. CRED iQ suggested this drop “indicates some stabilization” and may signal that core CRE loans have reached a turning point.
The multifamily sector, however, is facing intensifying headwinds. Losses in this segment climbed to $767 million in the first quarter—the highest quarterly total since 2012. CRED iQ noted that this continued increase “highlights growing challenges” for multifamily properties. The report also pointed out that the ongoing rise in losses leaves uncertainty about whether the trend will continue.
In a separate analysis of delinquency trends from March 2020 to March 2025, CRED iQ found a dramatic surge in multifamily delinquencies. The total grew from $1.5 billion, or a 0.3% delinquency rate, in 2020 to $9.4 billion and a 1.5% rate in 2025. Loans at least 90 days past due “increased dramatically,” jumping from $0.56 billion in 2020 to $6.71 billion in 2025, according to the firm.
Core CRE delinquencies also nearly doubled over the same period, though the growth was less dramatic than in multifamily. Delinquent balances rose from $15.4 billion (1%) in 2020 to $31.4 billion (1.7%) in 2025, with the 90-day-plus portion swelling from $9.7 billion to $25.1 billion.
“These shifts underscore the increasing pressures on CRE loan performance, particularly in the multifamily sector, where rising delinquencies and losses signal heightened risk,” CRED iQ wrote.