KBRA Releases Research – CMBS Loan Performance Trends: April 2026

NEW YORK--(BUSINESS WIRE)--KBRA releases a report on U.S. commercial mortgage-backed securities (CMBS) loan performance trends observed in the April 2026 servicer reporting period. The 30+ day delinquency rate among KBRA-rated U.S. private label commercial mortgage-backed securities (CMBS) decreased 15 basis points (bps) to 7.6% in April from 7.7% in March, while the distress rate (reflecting delinquent plus current-but-specially-serviced loans) declined 8 bps.

The multifamily sector’s distress rate increased 60 bps, marking the second consecutive monthly increase. Loans whose borrowers failed to secure Housing Finance Corporation (HFC) tax exemptions (or Public Facility Corporation exemptions) in Texas were one of the main contributors. Notably, the $53.8 million The Riley loan (BBCMS 2024-C26) became delinquent this month after transferring to special servicing in January. The failure to obtain the HFC exemption triggered a borrower obligation to pay down the principal balance of the loan, which the borrower failed to do, leading to the special servicing transfer. The $55 million Texas SH Portfolio (across two conduits) was also affected, transferring to the special servicer this month after the borrower failed to obtain the tax exemption and remit the principal payment. The circumstances of these two loans mirror that of the $62.5 million Waterford Grove Apartments loan in MSBAM 2025-5C1, which was discussed in last month’s report.

The mixed-use sector experienced a 137-bp decline in distress rate due to the resolution of the previously specially serviced 597 Fifth Avenue loan ($105 million in COMM 2014-UBS4) and the Triple Net Portfolio loan ($93.5 million in three conduits) becoming current.

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

• The delinquency rate decreased 15 bps to 7.6% ($25.3 billion) from 7.7% ($25.5 billion) last month.
• The distress rate declined slightly to 10.2% ($34.1 billion) from 10.3% ($34 billion) last month.
• The multifamily delinquency rate is now in double digits, driven by a few larger newer vintage loan defaults. The property-type’s distress rate also increased 60 bps, following a 92-bp increase last month. The delinquency and distress increases were primarily driven by the $196.8 million 20 Broad Street loan in HAMLET 2020-CRE1 becoming 30+ days delinquent and the aforementioned HFC-related issues.
• The office delinquency rate declined 22 bps to 12.6% but the current-but-specially-serviced rate increased 14 bps, resulting in the distress rate falling 8 bps. The Club Row Building ($155 million in two conduits) paid current this month and the status for Riverfront Plaza ($129.2 million in three conduits) switched from 30+ days delinquent to late payment.

In this report, KBRA provides observations across our $343.8 billion rated universe of U.S. private label CMBS, including conduits, single-asset single borrower (SB), and large loan (LL) transactions.

Click here to view the report.

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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.

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