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National  + Distressed Assets  | 

KBRA Reports January Increases in CMBS Delinquency, Distress Rates

Kroll Bond Rating Agency reported the 30+ day delinquency rate among KBRA-rated U.S. private label CMBS increased to 8.1% in January from 7.6% in December 2025. The distress rate, reflecting delinquent plus current-but-specially-serviced loans, increased 30 basis points to 10.7%.

The office delinquency rate increased 156 bps in January to 13.9%. KBRA attributed this mainly to One New York Plaza ($835 million in ONYP 2020-1NYP), which transferred to special servicing 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. Office experienced the highest volume of newly distressed loans (68.5%, or $1.6 billion), followed by multifamily (14.5%, $331.4 million) and lodging (6.6%, $150.2 million). Conversely, retail distress declined by 54 bps during January.

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

  • ◦Financing
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