The 30+ day delinquency rate among KBRA-rated U.S. private label commercial mortgage-backed securities (CMBS) increased to 8.1% in January from 7.6% in December, while the distress rate (which reflects delinquent plus current-but-specially-serviced loans) increased to 10.7% from 10.4%.
The office delinquency rate increased 156 basis points (bps) this month to 13.9%. This jump is mainly attributed to One New York Plaza ($835 million in ONYP 2020-1NYP), which transferred to the special servicer for imminent monetary default ahead of its January 2026 maturity, and became nonperforming matured balloon, after which a modification with an extension was executed.
Loans totaling $2.3 billion were newly added to the distress rate, of which 52.7% ($1.2 billion) involved imminent or actual maturity default. The office sector experienced the highest volume of newly distressed loans (68.5%, $1.6 billion), followed by multifamily (14.5%, $331.4 million), and lodging (6.6%, $150.2 million).
Key observations of the January 2026 performance data are as follows:
- The delinquency rate increased by 45 bps to 8.1% ($26.5 billion) from 7.6% ($25.4 billion) last month.
- The distress rate edged up to 10.7% ($34.9 billion) from 10.4% ($34.2 billion) last month.
- The office delinquency rate increased 156 bps this month to 13.9%. One New York Plaza ($835 million in ONYP 2020-1NYP) was transferred to the special servicer for imminent monetary default and became nonperforming matured balloon. The special servicer reported that the loan has been modified and extended. The loan should return to the master servicer if it performs in accordance with the modification agreement. Worldwide Plaza ($235 million in four KBRA-rated conduits) became 30 days delinquent after being late on its payment in December. A new mezzanine note holder accelerated the outstanding mezzanine loan and scheduled a Uniform Commercial Code (UCC) sale for mid-January, according to the servicer.
- The retail sector saw a 54-bps decline in its distress rate as three loans averaging $130.2 million were returned to the master servicer. Augusta Mall ($159 million in two KBRA-rated conduits) was returned after issues related to the ground lease were resolved; The Mall of New Hampshire ($150 million in two KBRA-rated conduits) was returned after completing an extension agreement; and St. Louis Premium Outlets ($81.6 million in three KBRA-rated conduits) was returned after the borrower extended the loan maturity to October 2027.
In this report, KBRA provides observations across our $337.2 billion rated universe of U.S. private label CMBS including conduits, single-asset single borrower (SASB), and large loan (LL) transactions.
Click here to view the report.
Recent Publications
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- CMBS Trend Watch: January 2026
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- KBRA CMBS Loss Compendium Update: December 2025
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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