KBRA Releases Research – CMBS Loan Performance Trends: September 2026

KBRA releases a report on U.S. commercial mortgage-backed securities (CMBS) loan performance trends observed in the September 2026 servicer reporting period. The 30+ day delinquency rate among KBRA-rated U.S. private label CMBS increased 9 basis points (bps) to 7.7% in September from 7.6% in August, while the distress rate (reflecting delinquent plus current-but-specially-serviced loans) declined 4 bps.

Key observations of the September 2026 performance data are as follows:

• The overall delinquency rate increased 9 bps to 7.7% ($25.8 billion) this month, driven by increases in office and multifamily delinquencies; declines across other property types partially offset the increases. The overall delinquency rate is mostly unchanged from a year ago.
• The distress rate decreased 4 bps to 10.3% this month, as a decline in single borrower (SB)/large loan (LL) distress more than offset an increase in conduit distress. The overall distress rate is 31 bps lower year-over-year (YoY).
• The office distress rate decreased 14 bps to 17.6% this month because of the resolution of several distressed office loans. The rate would have fallen further but for the transfer of One SoHo Square ($469 million across six conduit transactions) to special servicing for imminent default.
• The multifamily distress rate increased 40 bps, primarily driven by Waterford Grove Apartments ($60 million in MSBAM 2025-5C1) and Abington & Cypress ($45.7 million across two conduits), which returned to 30+ days delinquent after being current the month prior.
• The retail distress rate decreased 52 bps to 9.6% following the disposition of Providence Place Mall ($249.9 million in DBUBS 2011-LC3A).
• The conduit and SB/LL distress rate trends has diverged, with the conduit distress rate of 12.3% being +55 bps YoY, while SB/LL distress has fallen meaningfully from its 2025 peak and is now around 6%.

In this report, KBRA provides observations across our $344.4 billion rated universe of U.S. private label CMBS, including conduits, single-asset single borrower (SASB), and LL transactions. These transactions collectively are collateralized by $9.2 billion fully defeased and $335.3 billion non-fully defeased loans. All the rates presented in this report are calculated as a percentage of the respective non-fully defeased loan balances.

Click here to view the report.

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About KBRA

KBRA, one of the major credit rating agencies, is registered in the U.S., EU, and the UK. KBRA is recognized as a Qualified Rating Agency in Taiwan, and is also a Designated Rating Organization for structured finance ratings in Canada. As a full-service credit rating agency, investors can use KBRA ratings for regulatory capital purposes in multiple jurisdictions.

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