CMBS Delinquency Rate Climbs to 8.02% in September

By RadCRE Research · · Industry Insights

The overall CMBS delinquency rate reached 8.02% in September 2026, marking its highest level since November 2020 [1].

CMBS Delinquency Rate Rises to Multi-Year High

The overall commercial mortgage-backed securities (CMBS) delinquency rate increased to 8.02% in September 2026, representing a 17 basis point rise for the month. This figure marks the highest delinquency rate observed since November 2020, signaling continued stress within the commercial real estate lending market [1].

This recent surge in delinquencies was significantly influenced by five large loans, encompassing office, mixed-use, and lodging properties. These loans contributed substantially to the increase as borrowers encountered challenges related to loan maturities or faced foreclosure proceedings [1].

Sectoral Performance and Evolving Pressures

A more granular analysis reveals divergent trends across property sectors. Office properties continued to face considerable headwinds, with their delinquency rate escalating to 12.16%. The multifamily sector also saw an increase, reaching an 8.04% delinquency rate [1].

Conversely, the retail sector demonstrated some resilience, with its delinquency rate improving to 6.58%. This improvement was attributed to several large mall loans either resuming performing status or being successfully paid off. The evolving financing conditions underscore the importance for CRE investors and property owners to diligently monitor loan performance, explore refinancing options, and assess property-level fundamentals [1].

RadCRE Perspective

“The consistent rise in CMBS delinquencies, particularly in sectors like office and multifamily, highlights the persistent challenges in today’s market. The 8.02% overall rate is a clear indicator that many borrowers are still navigating complex maturity events and market shifts. While retail showing some stabilization is a positive sign, the broader landscape demands a proactive approach to asset management and strategic refinancing. Owners need to understand their exposure, and institutions must be prepared for continued volatility, especially with loans nearing maturity.” – Majid Radaei, Founder & Principal Broker, RadCRE

Tags: CMBS delinquency, commercial real estate loans, office market trends, multifamily delinquencies, CRE financing challenges

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