New data from Trepp show that the overall CMBS delinquency rate moved lower in June 2026, even as stress increased across several major property types. The Trepp CMBS Delinquency Rate declined by 20 basis points during the month to 7.35%, a shift driven largely by the cure of a sizable lodging loan. This improvement at the headline level masks divergent trends by sector, with three of the five primary property types recording higher delinquency rates and two posting declines.
Newly delinquent loans totaled $2.64 billion in June. Within that volume, the five largest loans turning delinquent represented $998.9 million of the total. The new problem loans were spread across sectors and geographies, including a super-regional mall in Southern California, a regional mall in New Hampshire, an office complex in New York, a mixed-use tower in Minneapolis and a multifamily property in Manhattan. These large individual credits had an outsized influence on segment-level delinquency performance.
Retail experienced the sharpest deterioration in June. The sector’s CMBS delinquency rate increased by 30 basis points to 6.91%, underscoring continued pressure on shopping centers and malls. Multifamily also moved in the wrong direction, with its delinquency rate rising by 28 basis points to 7.23%. This represented a reversal from the prior month, when multifamily had shown improvement, and was attributed to several large multifamily assets newly entering delinquency.
Office delinquencies also inched higher, though by a smaller margin. The office sector’s CMBS delinquency rate edged up four basis points to 11.57%, remaining elevated relative to other major property types. By contrast, lodging recorded the largest improvement, with its delinquency rate falling 79 basis points to 5.22% as the large lodging cure and other positive movements offset new distress. Industrial performance also improved modestly, with the sector’s CMBS delinquency rate declining by 11 basis points to 1.20%, leaving it as the best-performing major property type in the CMBS universe covered in the report.
Trepp noted that loans categorized as CMBS 2.0 showed broadly similar patterns in June across all five property types. That indicates the sector-level trends observed in the overall CMBS delinquency figures were also evident within the more recent-vintage CMBS collateral pool, with retail and multifamily facing more incremental distress, office showing continued but slower-moving pressure, and lodging and industrial registering incremental improvement.
