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Commercial mortgage delinquencies persist as the debt obligations of several prominent office towers in Downtown Denver remain unfulfilled, highlighting a mounting financial predicament.
Around one-third of commercial mortgages linked to downtown office buildings are in arrears, marking the third-highest delinquency rate amongst 50 metropolitan areas, according to a report from Trepp revealed last summer.
This trend underscores the compromised state of the commercial real estate (CRE) sector in metro Denver, a nuanced situation characterized by escalating delinquency rates across the nation, as well as intricacies specific to particular sectors.
In April 2025, the delinquency rate for Commercial Mortgage-Backed Securities (CMBS) surged to 7.03%, with the multifamily and lodging sectors experiencing significant upticks. However, commercial real estate distress, while on the rise, remains predominantly localized[2][3].
In the larger context, the Denver commercial real estate market encompasses updates on malls and various properties. To illustrate, the Colorado Mills mall's loan secured a two-year extension after exiting default[5]. Yet, specific data regarding office buildings in the downtown area remains sparse.
To gain more precise insights into delinquencies in downtown office buildings, one may refer to local market reports or consult real estate firms such as CBRE or JLL.
The delinquency rate in downtown Denver's commercial real estate sector, particularly office buildings, is a concern that falls under the broader umbrella of national commercial real estate (CRE) distress. As the situation evolves, understanding local politics and implementing intelligent financial strategies will be crucial in navigating this challenging real estate landscape.
