KBRA releases a report on U.S. commercial mortgage-backed securities (CMBS) loan performance trends observed in the July 2026 servicer reporting period. The 30+ day delinquency rate among KBRA-rated U.S. private label CMBS increased 29 basis points (bps) to 7.8% in July from 7.5% in June, while the distress rate (reflecting delinquent plus current-but-specially-serviced loans) climbed 18 bps.

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

• The overall delinquency rate increased 29 bps to 7.8% ($26.1 billion) this month, driven by an increase in conduits that are partially offset by a decline in the SB/LL category.
• The distress rate climbed to 10.1% as both conduit and single borrower (SB)/large loan (LL) saw slight increases this month; however, the rate remains lower by 49 bps year-over-year (YoY).
• The office distress rate declined 33 bps to 17.2% this month, primarily driven by the return to the master servicer of 3 Park Avenue ($182 million across three conduits) and the resolutions of Bank of America Plaza ($400 million across four conduits) and Gateway Center ($91.8 million in JPMCC 2013-C10). On the negative side, 1812 North Moore ($172.8 million across two conduits) and 675 Creekside Way ($83.4 million across three conduits) both fell more than 30 days delinquent.
• The retail distress rate increased 91 bps to 9.6%, primarily driven by three loans transferring to the special servicer: Augusta Mall ($155.2 million across two conduits), Yorktown Center ($120.5 million in CG-CCRE 2014-FL1), and Harbor Place ($67.5 million in UBS-BB 2013-C5). Despite the increase in July, retail’s distress rate is down 2 bps YoY.
• The multifamily distress rate jumped 73 bps in July after declining for two straight months. Twenty-three loans became newly distressed in July, ranging from $3 million to $45.7 million with an average balance of $14.2 million. Though the distress rate has remained relatively range-bound since 2025, a larger share of distressed loans has become delinquent.

In this report, KBRA provides observations across our $343.8 billion rated universe of U.S. private label CMBS, including conduits, single-asset single borrower (SASB), and LL transactions. These transactions collectively are collateralized by $9 billion fully defeased and $334.8 billion non-fully-defeased loans. All the rates presented in this report are calculated as a percentage of the respective non-fully-defeased loan balances.

Click here to view the report.

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About KBRA

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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