Office CMBS Delinquency Rate at Highest Level This Decade
Why this matters
Office continues to trade in two distinct markets: trophy assets in walkable submarkets that are leasing at or near record rents, and commodity Class B and C buildings where the basis is still resetting. Underwriting on the latter has moved toward replacement-cost-minus, with credit underwriting now leaning on tenant covenant and remaining lease term rather than mark-to-market expectations. For LP-positioned capital, the read-through is that the bifurcation is now a structural feature of the sector, not a cycle to wait out.
Editorial analysis · Real Estate Trail Editorial
On the RET wire
- Disclosed office deal value tracked in September 2026: $13.7B across 69 reported transactions. All Office coverage →
Computed from Real Estate Trail’s own tracked coverage
The office commercial mortgage-backed securities (CMBS) delinquency rate reached 13.2 percent in August 2026, the highest reading since at least 2019 and up from 8.1 percent in July 2024. That is roughly 1.6 times the…
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