2400 Market Street in Philadelphia is 99.5% occupied, and its largest tenant, Aramark, has a lease that runs to 2034. The $205 million loan on the building still moved to a special servicer on Sept. 29 for imminent default ahead of its Dec. 9 maturity. The servicer is pursuing a modification.<\/p>\n\n\n\n
In October alone, CRED iQ’s property alerts flagged $4.5 billion of conduit and single-asset (SASB) CMBS debt as newly delinquent or newly in special servicing, and 93% of it was past maturity or within six months of it.<\/strong> Office made up $1.5 billion, hotels $1.1 billion, retail $0.7 billion and industrial $0.5 billion.<\/p>\n\n\n\n The national rate is creeping up: 11.2% of the $617 billion of conduit and SASB loans in the October remittance was delinquent, past maturity or with a special servicer, against 10.9% a year earlier. The map moved more. New York fell to 11.2% from 12.5%, while Los Angeles rose to 14.6% from 9.4%, Chicago to 23.5% from 19.5% and Houston to 15.3% from 12.4%.<\/p>\n\n\n\n New York’s October alerts were maturity failures. The Essex, a $117 million loan on a mostly residential Manhattan building, went to a special servicer after the borrower said it could not repay at its Oct. 30 maturity. The $100 million 60 Madison Avenue loan, on an office building 58% occupied at year-end, passed its Oct. 6 maturity as the borrower seeks an extension. Across the river, the $250 million loan on 101 Hudson Street in Jersey City, 65% occupied, went unpaid at its Oct. 11 maturity.<\/p>\n\n\n\n Office is 16.4% distressed nationally and 44% of all distressed balance. In Los Angeles, where office distress more than doubled to 21.5% from 9.9%, the $74 million Equitable Plaza loan missed its extended Oct. 6 maturity; the tower was last valued at $57.7 million, against $150.5 million at origination. Chicago office distress is 32.6%, and the $54 million Executive Towers West loan in suburban Downers Grove, 63% occupied, went to a special servicer. Houston office distress rose to 31.5% from 21.9%, and the strain is reaching last year’s loans: three Houston apartment loans made in 2025, $93.5 million in all, went 30 days delinquent in October.<\/p>\n\n\n\n Industrial is not exempt. The $321 million LBA 2024-7IND loan, on warehouses in 10 states, matured Oct. 9 without being repaid; an extension is in process. The $325 million Fresno Fashion Fair loan went 30 days delinquent ahead of its Nov. 1 maturity, even though the mall is 97.6% occupied. A $746 million loan on more than 70 select-service hotels (THPT 2023-THL) was transferred for imminent default ahead of a Dec. 6 maturity.<\/p>\n\n\n\n CRE CLO distress is 6.5% overall but 34.8% in the 17 CLOs left from 2021 and 2022, where 71% of the balance has been modified. Matured CLO loans tend to stay out of special servicing: of the 18 CLO loans flagged in October, 16 were delinquencies at or near maturity and only 2 were transfers, both notes on Tides at Wynn Palms in Las Vegas: $98 million across two 2022 MF1 deals, modified in 2025 and now covering debt service 0.50 times.<\/p>\n\n\n\n Full occupancy is no protection, as 2400 Market and Fresno Fashion Fair show. The test is whether a loan can be refinanced at today’s rates and values, and in October it was failing in Los Angeles, Chicago and Houston as well as New York.<\/p>\n\n\n\n Source: CRED iQ proprietary loan-level analytics and CRED iQ Property Alerts, October 2026. Conduit and SASB\/large-loan CMBS, October 2026 remittance versus October 2025 (deals whose October file has not yet loaded use their September data); CRE CLO shown separately; agency deals and defeased loans excluded. Distress = balance 30+ days delinquent, past maturity (performing or not) or in special servicing, as a share of outstanding balance. Portfolio loans allocated to metros by property. New alerts = loans newly delinquent or newly transferred to special servicing, alerts dated Oct. 1 – Oct. 29, 2026. Loan details from servicer commentary.<\/em><\/p>\n\n\n\nMetro<\/th> CMBS balance<\/th> Distress rate<\/th> A year ago<\/th> Change (bp)<\/th> Office distress<\/th><\/tr><\/thead> Chicago<\/td> $22.1B<\/td> 23.5%<\/td> 19.5%<\/td> +398<\/td> 32.6%<\/td><\/tr> Philadelphia<\/td> $12.0B<\/td> 23.0%<\/td> 21.3%<\/td> +166<\/td> 37.4%<\/td><\/tr> San Francisco<\/td> $23.2B<\/td> 17.5%<\/td> 19.8%<\/td> -231<\/td> 5.8%<\/td><\/tr> Houston<\/td> $14.1B<\/td> 15.3%<\/td> 12.4%<\/td> +290<\/td> 31.5%<\/td><\/tr> Los Angeles<\/td> $33.3B<\/td> 14.6%<\/td> 9.4%<\/td> +511<\/td> 21.5%<\/td><\/tr> Seattle<\/td> $11.9B<\/td> 13.0%<\/td> 12.4%<\/td> +62<\/td> 21.3%<\/td><\/tr> Washington, D.C.<\/td> $22.1B<\/td> 12.5%<\/td> 10.6%<\/td> +192<\/td> 19.7%<\/td><\/tr> New York<\/td> $147.0B<\/td> 11.2%<\/td> 12.5%<\/td> -129<\/td> 12.7%<\/td><\/tr> San Jose<\/td> $9.6B<\/td> 7.2%<\/td> 4.7%<\/td> +246<\/td> 5.7%<\/td><\/tr> Atlanta<\/td> $16.5B<\/td> 7.0%<\/td> 6.7%<\/td> +27<\/td> 17.1%<\/td><\/tr> Boston<\/td> $18.3B<\/td> 6.2%<\/td> 4.2%<\/td> +205<\/td> 2.7%<\/td><\/tr> Dallas-Fort Worth<\/td> $16.5B<\/td> 6.1%<\/td> 6.6%<\/td> -48<\/td> 20.3%<\/td><\/tr> Phoenix<\/td> $9.9B<\/td> 5.0%<\/td> 4.9%<\/td> +7<\/td> 15.0%<\/td><\/tr> Miami<\/td> $19.9B<\/td> 3.1%<\/td> 5.6%<\/td> -251<\/td> 3.3%<\/td><\/tr> Las Vegas<\/td> $22.0B<\/td> 2.8%<\/td> 2.5%<\/td> +29<\/td> 1.6%<\/td><\/tr><\/tbody><\/table> New York Is Improving, but Its Maturities Keep Missing<\/h2>\n\n\n\n
Office Trouble Spreads to L.A., Chicago and Houston<\/h2>\n\n\n\n
Warehouses, Malls and Hotels Hit Their Maturity Dates<\/h2>\n\n\n\n
Property type<\/th> Conduit<\/th> SASB<\/th> CMBS total<\/th> CMBS a year ago<\/th> CRE CLO<\/th><\/tr><\/thead> Office<\/td> 20.2%<\/td> 12.9%<\/td> 16.4%<\/td> 14.7%<\/td> 19.2%<\/td><\/tr> Mixed-use<\/td> 14.7%<\/td> 12.7%<\/td> 13.8%<\/td> 14.5%<\/td> 10.7%<\/td><\/tr> Retail<\/td> 10.0%<\/td> 12.4%<\/td> 10.8%<\/td> 10.0%<\/td> 1.5%<\/td><\/tr> Lodging<\/td> 11.0%<\/td> 9.3%<\/td> 9.9%<\/td> 9.2%<\/td> 5.5%<\/td><\/tr> Multifamily<\/td> 9.4%<\/td> 7.9%<\/td> 8.7%<\/td> 9.3%<\/td> 6.3%<\/td><\/tr> Industrial<\/td> 3.5%<\/td> 1.0%<\/td> 1.9%<\/td> 2.8%<\/td> 0.9%<\/td><\/tr> All<\/td> 12.6%<\/td> 9.8%<\/td> 11.2%<\/td> 10.9%<\/td> 6.5%<\/td><\/tr><\/tbody><\/table> CRE CLOs: A Clean Headline, a Troubled Legacy Book<\/h2>\n\n\n\n
The Takeaway<\/h2>\n\n\n\n