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CMBS delinquency rates fall in Q2, still elevated versus other lenders

CMBS delinquency rates declined by 39 basis points to 4.82% in the second quarter, but office and lodging continued to post the highest delinquency levels.

Reported · Written up by our desk · Commercial

Delinquency rates on mortgages backed by commercial properties declined during the second quarter of 2026, according to the Mortgage Bankers Association’s latest commercial real estate finance Loan Performance Survey, as summarized by ConnectCRE. The survey showed that while CMBS delinquency rates fell during Q2, they remained elevated relative to other lender types.

ConnectCRE reported that the share of loans that were delinquent generally declined across major property types, though performance stayed mixed. Office and lodging continued to have the highest delinquency rates, even as overall delinquencies improved.

The outlet said CMBS delinquency rates fell by 39 basis points to 4.82% during the quarter. Life company loans were the second-highest delinquency rate segment, improving as well, with delinquencies dropping 28 basis points to 1.19%.

ConnectCRE also cited Reggie Booker, the MBA’s associate VP of commercial real estate research, saying commercial mortgage loan performance improved in Q2, with delinquency rates declining across most major property types and capital sources. He added that despite ongoing pressure in office and lodging and elevated CMBS delinquencies versus other lenders, the decline in non-current loan balances points to continued stability in the commercial mortgage market.

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