[September 01, 2026]

KBRA Releases Research - CMBS Loan Performance Trends: August 2026

KBRA releases a report on U.S. commercial mortgage-backed securities (CMBS) loan performance trends observed in the August 2026 servicer reporting period. The 30+ day delinquency rate among KBRA-rated U.S. private label CMBS decreased 22 basis points (bps) to 7.6% in August from 7.8% in July, while the distress rate (reflecting delinquent plus current-but-specially-serviced loans) climbed 24 bps.

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

• The overall delinquency rate decreased 22 bps to 7.6% ($25.4 billion) this month due to a decline in conduit delinquency across all property types except industrial.
• Conversely, the distress rate climbed 24 bps to 10.3% as both conduit and single borrower (SB)/large loan (LL) saw increases this month; however, the rate is 20 bps lower year-over-year (YoY).
• The office distress rate increased 61 bps to 17.8% this month because of an increase in newly current but specially serviced loans. Notable new transfers were Project James ($377.6 million in BSREP 2021-DC), 111 Livingston Street ($120 million in three conduits), and 60 Madison Avenue ($100 million in two conduits).
• The retail distress rate increased 50 bps to 10.1%, primarily driven by Fresno Fashion Fair Mall ($325 million in six conduits) transferring to the special servicer ahead of its November 2026 maturity date.
• The multifamily distress rate fell 73 bps in August, reversing the 73-bp increase recorded in July. The sector's distress rate is 123 bps below the 11.6% rate recorded one year ago.

In this report, KBRA provides observations across our $343.4 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 $8.9 billion fully defeased and $334.6 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 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.

Doc ID: 1016778

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