CRE Loan Delinquencies Decline in Q2; CMBS Remains Elevated

Delinquency rates for mortgages backed by commercial properties decreased during the second quarter of 2026. That’s according to the Mortgage Bankers Association’s (MBA) latest commercial real estate finance (CREF) Loan Performance Survey, which reported that CMBS delinquencies declined during Q2 but remain elevated relative to other lender types.

The survey found that the share of loans that were delinquent generally declined across the major property types, though performance remained mixed. Office and lodging continued to exhibit the highest delinquency rates. CMBS delinquencies fell by 39 basis points to 4.82% during the quarter. The second-highest delinquency rate was for life company loans, which also saw an improvement during Q2, falling 28 bps to 1.19%.

“Commercial mortgage loan performance improved during the second quarter, with delinquency rates declining across most major property types and capital sources,” said Reggie Booker, MBA’s associate VP of commercial real estate research. “While office and lodging properties continue to face challenges and CMBS delinquency rates remain elevated relative to other lenders, the overall decline in non-current loan balances points to continued stability in the commercial mortgage market.”