MBA: Delinquency Rates for Commercial Properties Increase in First Quarter

Delinquency rates for mortgages backed by commercial properties increased during the first quarter of 2026, according to MBA’s latest commercial real estate finance Loan Performance Survey.

“Commercial mortgage delinquency rates increased to 4.02% in the first quarter of 2026 compared to 3.86% in the previous quarter,” said Judie Ricks, MBA’s associate vice president of commercial real estate research. “The data show a gradual but persistent increase in delinquency rates in the overall market. In the most recent quarter, there were increases in short-term delinquency for all property types, except industrial, with some of the largest increases coming from multifamily, office, and health care properties.”

Added Ricks, “GSE, FHA, and CMBS loans also saw large jumps in early-stage delinquency. This is a slight difference from last year where long-term delinquency rates trended higher and suggests that the strong market for refinances and modifications in 2025 was conducive to better positioning troubled loans.”

The balance of commercial mortgages that are not current increased in the first quarter of 2026.

The share of loans that were delinquent increased for some property types, particularly office, lodging, retail, and multifamily, and decreased for industrial and health care properties.

Among capital sources, CMBS loan delinquency rates saw the highest levels.

• 5.21% of CMBS loan balances were 30 days or more delinquent, up from 4.97% at the end of last quarter.

• Non-current rates for other capital sources remained moderate.

• 1.47% of life company loan balances were delinquent, down from 1.50%.

• 0.97% of GSE loan balances were delinquent, up from 0.63% the previous quarter.

• 0.96% of FHA multifamily and health care loan balances were delinquent, up from 0.65% the prior quarter.

MBA’s CREF Loan Performance survey collected information on commercial and multifamily mortgage portfolios as of March 31, 2026. This quarter’s results build on similar surveys conducted since April 2020. Participants reported on $2.93 trillion of loans in March 2026, representing 59% of the total $5 trillion in commercial and multifamily mortgage debt outstanding (MDO) as of the fourth quarter of 2025.