- CMBS delinquency rate rose to 7.47% in January 2026, up 17 basis points from December.
- Office CMBS delinquency climbed to a record 12.34%, the highest on record.
- Lodging CMBS delinquency dropped sharply, while multifamily and retail rates increased.
- Loans past maturity but current on interest push effective distress above 9%.
Surge in Office Distress
The CMBS delinquency rate increased to 7.47% to start 2026, according to Trepp’s latest reporting. The headline rate rose by 17 basis points from December, driven largely by a net increase of $1.6B in delinquent loans, with the office sector being the main contributor.
Delinquency in the office space escalated by 103 basis points to a record 12.34%, surpassing its previous peak reached in October 2025. The multifamily sector also saw its rate rebound by 30 basis points to 6.94% after a brief decline. Retail posted its sixth monthly increase in the past year, rising by 12 basis points to 7.04%.
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Lodging and Industrial Provide Some Relief
In contrast to worsening trends elsewhere, CMBS delinquency in lodging fell by 105 basis points to 5.56%, the lowest level since March 2024. The industrial sector also improved slightly, with delinquency falling by 18 basis points to 0.62% after several months of increases.
Serious Delinquency and Maturity Concerns Climb
The share of loans seriously delinquent—or at least 60 days behind, in foreclosure, REO, or a non-performing balloon—rose to 7.09%. Including loans that are past maturity but still current on interest would push the overall distress rate to 9.14%, highlighting persistent maturity challenges in the CMBS market.
CMBS 2.0+ Details
Delinquency for CMBS 2.0+ loans increased by 18 basis points to 7.38%. Sector trends mirrored the broader market: office rose to 12.23%, multifamily to 6.94%, retail to 6.74%, while lodging and industrial delinquency improved. Multifamily performance, in particular, has come under closer scrutiny as distress continues to build in that segment.
