CMBS Delinquency Rate Hits 8.02% in September

By RadCRE Research · 2026-10-13 · Market Updates

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

CMBS Delinquency Rate Rises to 8.02% in September 2026

The commercial mortgage-backed securities (CMBS) market observed a notable increase in its overall delinquency rate, which reached 8.02% in September 2026. This figure represents a 17 basis point rise for the month and is the highest level recorded since November 2020, according to data highlighted by SVN | Desert Commercial Advisors [1].

The upward trend in delinquencies was significantly influenced by five large loans spanning office, mixed-use, and lodging properties. These loans contributed substantially to the increase as borrowers encountered maturity challenges or moved into foreclosure proceedings [1].

A deeper look into property types reveals varied performance. Office property delinquencies saw a rise, climbing to 12.16%. Similarly, multifamily delinquencies reached 8.04%. In contrast, the retail sector demonstrated improvement, with its delinquency rate falling to 6.58%. This positive shift in retail was attributed to several large mall loans either returning to performing status or being paid off [1].

These figures underscore the persistent pressures within certain segments of the commercial real estate lending market. Specifically, office properties and loans nearing their maturity dates are experiencing significant stress. For both CRE investors and property owners, continuous monitoring of loan performance, evaluation of refinancing options, and a focus on fundamental property-level metrics remain crucial as financing conditions continue to evolve [1].

RadCRE Perspective

"The latest CMBS delinquency report serves as a critical indicator of the ongoing stress in specific CRE sectors. The rise to 8.02% in September, primarily driven by office, mixed-use, and lodging assets facing maturity challenges or foreclosure, underscores the necessity for proactive asset management and robust underwriting. While retail shows resilience, the persistent pressure on office properties, with delinquencies at 12.16%, highlights where investors must exercise extreme caution and strategic repositioning. As financing conditions tighten, identifying value-add opportunities and effectively managing distressed assets becomes paramount for navigating this complex market." — Majid Radaei

Tags: CMBS delinquency rate, commercial real estate finance, office market distress, CRE investment outlook, RadCRE market analysis