In July 2026, Ocean Park Plaza (MSBAM 2017-C34), a 99,601-sf office property in Santa Monica, California, sold to The Wildwood School for $50.6 million ($508/sf). The buyer plans to relocate its campus to the property, which was marketed for $55.8 million ($560/sf). Occupancy declined to 27% as of December 2025 from 95% at issuance. Prior to the sale, approximately 73,832 sf (74% of GLA) was being marketed as available for lease. The loan is scheduled to mature in October 2027, and the reported sale price exceeds the $42.5 million outstanding balance.

In July 2026, 143 non-defeased loans ($3.23 billion) matured, of which 53.22% (90 loans; $1.72 billion) by unpaid principal balance (UPB) paid off at maturity. This cohort includes 34 loans ($754.2 million) that were paid off ahead of schedule. Meanwhile, 46.78% (53 loans; $1.51 billion) defaulted at maturity, including loans that were already in payment default or special servicing. The maturity default rate for loans collateralized by office was 97.84%, followed by lodging (46.53%) and retail (27.45%).

In securitized markets, private label commercial mortgage-backed securities (CMBS) issuance year-to-date (YTD) through July 17 reached $75.1 billion, outpacing the $66.8 billion at this point in 2025. Meanwhile, commercial real estate (CRE) collateralized loan obligation (CLO) issuance remains active, reaching $26.1 billion YTD, up from $18.2 billion over the same period in 2025.

Fourth & Blanchard, the largest of seven downtown Seattle office properties in the REO Selig Portfolio (GSMS 2014-GC22, CGCMT 2014-GC23, MSC 2017-H1), has been listed for sale for an undisclosed price. Marketing materials indicate that the 25-story class A office property is 51% leased. The portfolio loan previously transferred to special servicing in March 2024 ahead of its May 2024 maturity and the collateral properties subsequently became REO in August 2025 following a foreclosure sale the prior month. The 1.1 million-sf portfolio was 51% occupied as of June 2026, and the most recent January 2026 appraisal valued the portfolio at $131.9 million ($122/sf), 61% below the $335.3 million ($310/sf) issuance value.

In July 2026, CBRE began marketing the sale of Commerce Plaza I, one of the properties securing the $48.6 million College Boulevard Portfolio loan (CGCMT 2016-P5, CGCMT 2016-C3). Four class-A suburban office properties totaling 647,432 sf in Overland Park, Kansas remain collateral following the May 2026 release of Commerce Plaza II. The asking price for the office property has not been publicly disclosed.

During the June 2026 remittance period, 14 assets within the KCP coverage universe were resolved with a loss greater than 2% of the unpaid principal balance (UPB). The assets had an aggregate principal balance of $230 million and served as collateral in 14 CMBS transactions. Total realized losses of $131.3 million in June 2026 represented a 16% increase from May 2026 and were 44% below the trailing 12-month (TTM) average.

Two tenants at the collateral securing the $370 million AMA Plaza loan (BCP 2021-330N) have extended their leases. Latham & Watkins executed a seven-year extension and expanded its footprint to 194,000 sf (16% of GLA) from 35,274 sf, while Swanson, Martin & Bell executed a 12-year extension and reduced its footprint to approximately 56,750 sf (5%) from 91,000 sf. The collateral is a 1.2 million sf, class-A office tower and adjacent parking garage in Chicago, Illinois. The loan remains in special servicing amid foreclosure proceedings and delinquency, while declining cash flow and the anticipated departure of the American Medical Association (22% of GLA) continue to weigh on collateral performance.

The proposed sale of the 1.8 million-sf 1500 Market Street property securing the $368.0 million 1500 Market Street loan (JPMCC 2020-MKST) has fallen through, reversing the path outlined in KCP’s March 19 credit alert, which noted the asset had reportedly sold for less than $100 million and was slated for a mixed-use redevelopment. The largely vacant Center City Philadelphia office property has been in special servicing since August 2022 due to the borrower’s inability to refinance at maturity. The failed transaction leaves resolution of the distressed asset uncertain as the special servicer continues to work through the foreclosure process. Occupancy was most recently reported at 34% as of March 2026.

In July 2026, an April 2026 appraisal was reported, valuing the collateral securing the specially serviced 1 Kaiser Plaza loan (JPMCC 2016-JP3, JPMDB 2016-C4) at $53.5 million ($101/sf), a 75% decline from the issuance value of $212.0 million ($401/sf) and below the $97.1 million loan balance. The collateral is a 528,158-sf, class-A office building in Oakland, California. The loan transferred to special servicing in October 2024 due to imminent monetary default after Kaiser Foundation (45% of GLA) indicated it planned to significantly reduce its leased space.  Modification discussions between the special servicer and borrower remain ongoing following the loan's failure to pay off at its July 2026 maturity, after which it became non-performing.

The $23.9 million Leeton Leased Fee Portfolio loan (BBCMS 2025-C35), the $23.5 million Shabsels Leased Fee Portfolio loan (BANK5 2023-5YR1), and the $13.0 million Leeton Leased Fee Pool B Portfolio loan (BMARK 2025-V18) transferred to special servicing, according to investor reporting, following the Chapter 11 bankruptcy filings of guarantor-affiliated DAMIS Holdings LLC and personal bankruptcy filings of The guarantors. The loans are secured by retail portfolios totaling 629,088 sf, 761,872 sf, and 1.29 million sf, respectively, with properties located across Texas, Indiana, Iowa, Michigan, Missouri, Connecticut, New York, Georgia, and Illinois. DAMIS Holdings LLC and 89 affiliated entities filed for Chapter 11 protection on June 4, 2026, in the U.S. Bankruptcy Court for the District of New Jersey.