Kroll Bond Rating Agency reported that credit performance in its U.S. private-label CMBS universe weakened in January, with both delinquency and overall distress measures moving higher to start 2026.
The 30+ day delinquency rate across KBRA-rated private-label CMBS rose to 8.1% in January, up from 7.6% in December 2025. At the same time, the broader distress rate, which counts both delinquent loans and those that are current but in special servicing, increased by 30 basis points to 10.7%.
Office loans were a key driver of the deterioration. KBRA reported that the office delinquency rate climbed 156 basis points in January to 13.9%. The agency largely attributed this move to the treatment of the loan backed by One New York Plaza, a sizeable office credit with a balance of $835 million in the ONYP 2020-1NYP transaction.
According to KBRA, the One New York Plaza loan transferred to special servicing for imminent monetary default ahead of its January 2026 maturity. The loan subsequently became a nonperforming matured balloon before a modification was completed that included an extension of the loan. That sequence shifted the loan into the distressed category and contributed materially to the office segment’s higher delinquency reading.
Across the broader KBRA-rated CMBS universe, loans totaling $2.3 billion were newly captured in the distress rate during January. Of that amount, 52.7%, or approximately $1.2 billion, involved situations of imminent or actual maturity default, underscoring the impact of upcoming loan maturities on performance metrics.
By property type, office loans represented the largest share of newly distressed volume, accounting for 68.5%, or roughly $1.6 billion, of January additions. Multifamily followed with 14.5%, or $331.4 million, while lodging loans made up 6.6%, or $150.2 million, of new distress during the month.
Not all sectors moved in the same direction. KBRA noted that retail distress declined by 54 basis points in January, indicating some improvement in that segment even as office and other property types saw pressure reflected in higher delinquency and distress measures.
Overall, the January data from KBRA points to growing stress in parts of the CMBS market, particularly office, as maturing loans and special servicing activity continue to influence performance indicators early in 2026.
