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KBRA Releases Research – CMBS Loan Performance Trends: May 2026

Business Wire

KBRA releases a report on U.S. commercial mortgage-backed securities (CMBS) loan performance trends observed in the May 2026 servicer reporting period. The 30+ day delinquency rate among KBRA-rated U.S. private label CMBS increased 8 basis points (bps) to 7.7% in May from 7.6% in April, while the distress rate (reflecting delinquent plus current-but-specially-serviced loans) declined 17 bps.

After reaching double digits last month, the multifamily delinquency rate dropped 110 bps, partly due to the $195.9 million 20 Broad Street loan in HAMLET 2020-CRE1 becoming current after being 30+ days delinquent last month. Fourteen other multifamily loans became current in May, with balances ranging from $2.8 million to $43.9 million.

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

  • The overall delinquency rate increased 8 bps to 7.7% ($25.7 billion) month-over-month (MoM), and 22 bps year-over-year (YoY), driven by a continued uptick in conduits, despite declines in single borrower (SB)/large loan (LL).

  • The distress rate continued its yearlong downward trend, with the current month’s rate of 10% ($33.7 billion) representing a 17-bp MoM and 86-bp YoY decline. This trend was influenced by the combination of a largely stable conduit rate and a declining SB/LL rate.

  • The office distress rate declined 55 bps to 17% this month following the return to master servicing of One New York Plaza ($810 million in ONYP 2020-1NYP). The loan was modified and extended to January 2028 in exchange for a $25 million principal paydown. 215 West 125th Street ($33 million in JPMBB 2015-C30) also returned to the master servicer in May.

  • The multifamily delinquency rate improved 110 bps after reaching double digits last month, primarily driven by the $195.9 million 20 Broad Street loan in HAMLET 2020-CRE1 becoming current after being 30+ days delinquent. Additionally, 14 other loans became current in May, with balances ranging from $2.8 million to $43.9 million.

In this report, KBRA provides observations across our $345.4 billion rated universe of U.S. private label CMBS, including conduits, single-asset single borrower (SASB), and LL transactions.

Click here to view the report.

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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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