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KBRA Releases Research – CMBS Loan Performance Trends: February 2026

NEW YORK--(BUSINESS WIRE)--The 30+ day delinquency rate among KBRA-rated U.S. private label commercial mortgage-backed securities (CMBS) decreased to 7.5% in February from 8.1% in January, while the distress rate (reflecting delinquent plus current-but-specially-serviced loans) decreased to 10.3% from 10.7%.

The office delinquency rate decreased 110 basis points (bps) this month to 12.8%. As reported last month, One New York Plaza ($810 million in ONYP 2020-1NYP) was modified and extended, which brought its status to performing even though it remains with the special servicer. The next two largest KBRA-rated office loans that became current were 3000 Post Oak ($80 million in three conduits) and 7700 Parmer ($68 million in one conduit).

Key observations of the February 2026 performance data are as follows:

  • The delinquency rate decreased by 56 bps to 7.5% ($25 billion) from 8.1% ($26.5 billion) last month.
  • The distress rate dropped to 10.3% ($34.1 billion) from 10.7% ($34.9 billion) last month.
  • The office delinquency rate decreased 110 bps this month to 12.8%. As reported last month, One New York Plaza ($810 million in ONYP 2020-1NYP) was modified and extended, shifting its status to performing. The next two largest KBRA-rated office loans that became current this month were 3000 Post Oak ($80 million in three conduits) and 7700 Parmer ($68 million in one conduit).
  • The mixed-use sector saw a 75-bp decline in its distress rate mainly due to 650 Madison Avenue ($289.4 million in seven conduits) and Oak Street NLP Fund Portfolio ($145.8 million in three conduits). 650 Madison Avenue’s borrower funded a reinstatement payment along with $1.5 million in a new leasing reserve account to cover projected shortfalls over the next 12 months to bring the loan current.

In this report, KBRA provides observations across our $342.1 billion rated universe of U.S. private label CMBS, including conduits, single-asset single borrower (SASB), and large loan (LL) transactions.

Click here to view the report.

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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.

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Contacts

Aryansh Agrawal, Associate
+1 646-731-1381
aryansh.agrawal@kbra.com

Robert Grenda, Managing Director
+1 215-882-5494
robert.grenda@kbra.com

Business Development Contact

Andrew Foster, Director
+1 646-731-1470
andrew.foster@kbra.com

Kroll Bond Rating Agency, LLC

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Contacts

Aryansh Agrawal, Associate
+1 646-731-1381
aryansh.agrawal@kbra.com

Robert Grenda, Managing Director
+1 215-882-5494
robert.grenda@kbra.com

Business Development Contact

Andrew Foster, Director
+1 646-731-1470
andrew.foster@kbra.com

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