Commercial real estate distress is expanding beyond office properties, though office remains the most troubled sector, according to recent data from the Mortgage Bankers Association (MBA). The MBA’s findings, released February 22, 2026, indicate that while office vacancies and delinquencies are significantly higher than other property types, strains are increasingly affecting retail, hospitality, and even multifamily portfolios as interest rates remain elevated and refinancing becomes more challenging.
Approximately 24 percent of office property loans were scheduled to mature in 2025, a larger proportion than for most other sectors, making refinancing at current rates difficult for many owners. This pressure is reflected in rising capitalization and repayment risk, varying by lender type and property class. Delinquencies within commercial mortgage-backed securities (CMBS) have also increased, signaling challenges in securitized debt markets tied to weaker property fundamentals.
The MBA’s report underscores the unique pressures facing the office sector, stemming from shifts in workplace demand that have depressed cash flows and property values. Although, the impact is no longer isolated. Rising maturities, slower rent growth, and widening bid-ask spreads are beginning to affect other property types, leading lenders and investors to view distress as a broader financing issue.
The Mortgage Bankers Association (MBA) has been actively monitoring the situation and providing commentary to lawmakers. On February 11, 2026, MBA President and CEO Bob Broeksmit testified before the House Financial Services Subcommittee on Housing and Insurance regarding homeownership and the secondary mortgage market. The MBA also reported a decrease in mortgage applications in its weekly survey on February 11, 2026, indicating broader challenges in the mortgage market.
Industry events are also addressing these concerns. The 42nd Annual Regional Conference of MBAs, scheduled for March 22-24, 2026, in Atlantic City, New Jersey, will provide a forum for networking and lead generation within the mortgage and banking industry. The Mortgage Bankers Association of New York is hosting a series of events, including an Annual Wine Tasting Networking Event on March 10, 2026, and a Real Estate & Lending Summit on May 12, 2026. The NYMBA also has a golf outing scheduled for July 21, 2026.
The annual MBA Convention & Expo is scheduled for October 11-14, 2026, at the Hyatt Regency Chicago. The event is billed as the largest annual gathering of real estate finance professionals in the nation.
While office properties continue to lead distress, the widening cracks suggest that capital markets may begin to price risk more uniformly unless transaction and performance data improve.
