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Office CMBS delinquencies hit 8.89% in July 2026, a new record

New 60-plus day delinquency volume jumped to $2.82 billion in July from $2.09 billion in June, with office accounting for 40% of the total.

Reported · Written up by our desk · Commercial

Office commercial mortgage backed securities delinquencies rose to a fresh high in July 2026, reaching 8.89%, according to Fitch Ratings as reported by ConnectCRE. The new level surpassed the prior peak of 8.83% set in September 2012, and it was also higher than 8.0% a year earlier.

Fitch said the overall U.S. CMBS delinquency rate increased 16 basis points to 3.49% in July from 3.33% in June, driven primarily by new office delinquencies and the default of a large mixed-use SASB loan. New 60-plus day delinquency volume climbed to $2.82 billion in July from $2.09 billion in June.

ConnectCRE reported that the July increase in new delinquencies was led by office, which accounted for 40% or $1.12 billion, followed by mixed-use at 26% or $728 million, multifamily at 14% or $405 million, and retail at 10% or $274 million. Term defaults made up 67% of new delinquencies at $1.88 billion, while maturity defaults accounted for 33%.

Resolution volume declined to $1.54 billion in July from $1.63 billion in June, ConnectCRE said. July resolutions included $785 million of loan liquidations, $677 million of loans brought current, and $77 million of previously 60-plus day delinquent loans removed from Fitch’s index after improving to 30 days delinquent.

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