New MBA data pointed to rising early-stage trouble across key property types
Delinquency rates on mortgages backed by commercial properties edged higher in the first quarter of 2026, adding to a slow but persistent build-up of stress across parts of the market, according to new figures from the Mortgage Bankers Association (MBA).
MBA’s latest Commercial Real Estate Finance (CREF) Loan Performance Survey showed commercial mortgage delinquencies rising to 4.02% as of March 31, up from 3.86% at the end of 2025.
That level still remains far below post‑global financial crisis peaks, but it continues an upward trend that started in 2024 and has been driven largely by office, multifamily and weaker pockets of retail and lodging.
Early-stage delinquencies ticked up across most sectors
“The data show a gradual but persistent increase in delinquency rates in the overall market. In the most recent quarter, there were increases in short-term delinquency for all property types, except industrial, with some of the largest increases coming from multifamily, office, and health care properties,” said Judie Ricks, MBA’s associate vice president of commercial real estate research.
Ricks said government-sponsored enterprise, FHA and CMBS loans “also saw large jumps in early-stage delinquency.”
“This is a slight difference from last year – when long-term delinquency rates trended higher – and suggests that the strong market for refinances and modifications in 2025 was conducive to better positioning troubled loans.”
Behind the headline number, performance diverged sharply by capital source. About 5.21% of CMBS loan balances were 30 days or more delinquent, up from 4.97% the prior quarter, while delinquency rates for life insurers stayed low at 1.47%, down slightly from 1.50%.
GSE‑backed loans saw delinquencies rise to 0.97% from 0.63%, and FHA multifamily and health care loans climbed to 0.96% from 0.65%.
CMBS distress built even as banks stayed relatively steady
Separate readings from Trepp revealed that the overall US CMBS delinquency rate was at 7.55% in March 2026, led by a sharp jump in lodging and rising stress in office and multifamily securitizations.
CRED iQ’s March 2026 data similarly showed a CMBS distress rate of about 12%, including both delinquent and specially serviced loans.
By contrast, banks and life companies ended 2025 with modestly lower delinquency rates, according to MBA’s earlier Commercial Delinquency Report, which left overall performance “generally stable” even as CMBS trouble built in the background.
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