KBRA Releases Research – CMBS Loan Performance Trends: November 2025

NEW YORK--(BUSINESS WIRE)--KBRA releases a report on U.S. commercial mortgage-backed securities (CMBS) loan performance trends observed in the November 2025 servicer reporting period. The delinquency rate among KBRA-rated U.S. private label CMBS was steady at 7.8% in November after registering 7.9% in October. While the distress rate—the total delinquent plus current but specially serviced loan rate—decreased to 10.5% from 10.9% last month. The 32 Avenue of the Americas loan ($142.5 million in two KBRA-rated conduits and $282.5 million in three non-KBRA rated conduits) turned nonperforming matured balloon this month after the borrower indicated it would not pay off the loan at maturity in November. However, a loan modification with an extension is being discussed. Further, 1211 Avenue of the Americas ($1.04 billion in AOTA 2015-1211) was returned to the master servicer after a modification that extended the loan’s maturity to August 2028.

In November, CMBS loans totaling $1.2 billion were newly added to the distress rate, of which 36.6% ($453.4 million) involved imminent or actual maturity default. The office sector experienced the highest volume of newly distressed loans (24.5%, $303.2 million), followed by retail (23.6%, $293 million), and mixed-use (13.9%, $172 million).

Key observations of the November 2025 performance data are as follows:

• The delinquency rate was steady at 7.8% ($25.5 billion), mostly unchanged from October’s 7.9% ($25.6 billion).
• The distress rate decreased to 10.5% ($34.4 billion) from 10.9% ($35.3 billion) last month.
• The office delinquency rate increased 9 basis points (bps) this month to 12.3%. The 32 Avenue of the Americas loan ($142.5 million in two KBRA-rated conduits and $282.5 million in three non-KBRA rated conduits) turned nonperforming matured balloon this month after the borrower failed to pay off the loan at maturity in November; a modification to extend the loan to November 2027 is being negotiated. In addition, 1211 Avenue of the Americas ($1.04 billion in AOTA 2015-1211) was returned to the master servicer after a modification that extended the maturity to August 2028.
• The mixed-use sector saw a 72-bp drop in delinquency after 650 Madison Avenue ($289.4 million in seven KBRA-rated conduits and $510.7 million in five non-KBRA rated conduits and one non-KBRA rated single-asset single borrower (SASB) transaction) became current. Boca Office Portfolio ($69.3 million in two KBRA-rated conduits and $29.7 million in one non-KBRA rated conduit) was transferred to the special servicer, because the borrower plans to sell certain collateral properties but the loan documents do not allow partial releases.

In this report, KBRA provides observations across our $334.2 billion rated universe of U.S. private label CMBS including conduits, SASB, and large loan (LL) transactions.

Click here to view the report.

Recent Publications

• 2026 U.S. CMBS Outlook: Issuance Momentum Builds; Loan Distress Remains Elevated
• Self-Storage: The Shifting Landscape
• CMBS Servicer Advances: Curtailments Accelerate
• Conduit CMBS Default and Loss Study Update: 2.0 Begins to Make Its Mark
• Conduit Subordination: Follow the Credit Metrics
• KBRA CMBS Loss Compendium Update: June 2025
• CMBS Loan Performance Trends: October 2025
• CMBS Trend Watch: October 2025

About KBRA

KBRA, one of the major credit rating agencies, is registered in the U.S., EU, and the UK. KBRA is recognized as a Qualified Rating Agency in Taiwan, and is also a Designated Rating Organization for structured finance ratings in Canada. As a full-service credit rating agency, investors can use KBRA ratings for regulatory capital purposes in multiple jurisdictions.

Doc ID: 1012518