The retail sector going large
The US office sector is facing a crisis due to high delinquency rates and maturity defaults in commercial mortgage-backed securities (CMBS) loans. With over $100 billion in CMBS loans coming due in 2026, many are expected to fail to repay at maturity, leading to a significant increase in non-performing loans.
The US office sector is struggling with high delinquency rates. In January, delinquency rates for office loans in CMBS pools hit an all-time high of 12.34%. Morningstar DBRS estimates that over $100 billion in CMBS loans will come due in 2026. Many of these loans are expected to fail to repay at maturity. The office vacancy rate was 18.2% at the start of 2026. Low occupancy rates and maturity defaults are driving the crisis. Experts predict that many office buildings will need to be foreclosed or restructured.
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