KBRA releases a report on U.S. commercial mortgage-backed securities (CMBS) loan performance trends observed in the October 2026 servicer reporting period. The 30+ day delinquency rate among KBRA-rated U.S. private label CMBS remained relatively stable at 7.7% in October, down 2 basis points (bps) from September, while the distress rate (reflecting delinquent plus current-but-specially-serviced loans) increased marginally by 4 bps. Compared to a year ago, delinquency is down 24 bps and the distress rate is 52 bps lower.
Key observations of the October 2026 performance data are as follows:
- The overall delinquency rate decreased marginally 2 bps to 7.7% ($25.7 billion) this month, driven by declines in multifamily, office, and industrial delinquencies; increases across other property types offset the declines. The delinquency rate is 24 bps lower year-over-year (YoY).
- The overall distress rate increased marginally month-over-month by 4 bps to 10.3%, while remaining 52 bps lower YoY.
- Despite overall stability in distress rates, the conduit and single-borrower (SB)/large loan (LL) rates continued to diverge, with SB/LL distress remaining relatively steady at 5.8%, while conduit distress increased 19 bps to 12.5% this month; the latter is up 42 bps YoY.
- The office distress rate increased 11 bps this month, primarily driven by newly delinquent loans, including 101 Hudson Street ($250 million across five conduits), Huntington Center ($126 million across three conduits), and 80 Park Plaza ($116.3 million across four conduits). The increase was partially offset by the disposition of 225 Bush Street ($350 million across five conduits), 25 Broadway ($235 million across two conduits) becoming current, and the return of 7700 Parmer ($172 million across three conduits) to the master servicer.
- The mixed-use distress rate increased 41 bps, reflecting the newly delinquent loan Crocker Park Phase One & Two ($128.7 million across three conduits) and the transfer of The Essex ($117 million across three conduits) to special servicing.
In this report, KBRA provides observations across our $344.5 billion rated universe of U.S. private label CMBS, including conduits, single-asset single borrower (SASB), and LL transactions. These transactions are collectively 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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KBRA, one of the major credit rating agencies, is registered in the US, EU, UK, and Japan. 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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