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KBRA Releases Research – CMBS Loan Performance Trends: June 2026

1 Jul 2026   |   New York

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KBRA releases a report on U.S. commercial mortgage-backed securities (CMBS) loan performance trends observed in the June 2026 servicer reporting period. The 30+ day delinquency rate among KBRA-rated U.S. private label CMBS declined 13 basis points (bps) to 7.5% in June from 7.7% in May, while the distress rate (reflecting delinquent plus current-but-specially-serviced loans) declined 14 bps.

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

  • The overall delinquency rate decreased 13 bps to 7.5% ($25.2 billion) this month, driven by a decline in conduits that offset a slight increase in the SB/LL category. However, the delinquency rate remains 27 bps higher than last year.
  • The distress rate continued its downward trend this month, falling 14 bps month-over-month (MoM) to 9.9% ($33.2 billion); the rate is down 53 bps year-over-year (YoY). A mostly stable conduit rate and a declining SB/LL rate are the main drivers of the trend.
  • The office distress rate increased 44 bps to 17.5% this month, following the transfer of three office loans to special servicing. 425 Eye Street ($102.2 million across two conduits) transferred for imminent monetary default; 79 Madison Avenue ($85 million across two conduits) transferred after becoming a nonperforming matured loan; and Champion Station ($80 million in COMM 2016-COR1) transferred for imminent maturity default.
  • The multifamily distress rate declined in June for the second consecutive month, falling 98 bps after a 91-bp decline last month. The $539.5 million Yorkshire & Lexington Towers loan returned to the master servicer after a modification cured the defaults on the senior loan and subordinate mezzanine debt.
  • The lodging sector distress rate declined 20 bps this month, due to the return of the $87 million Holiday Inn FiDi loan to the master servicer following an extended rehabilitation period; a new borrower assumed the loan a year ago and undertook a conversion of the property to student housing.

In this report, KBRA provides observations across our $344.1 billion rated universe of U.S. private label CMBS, including conduits, single-asset single borrower (SASB), and large loan (LL) transactions.

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.

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