Dive Brief:

• The multifamily CMBS delinquency rate increased 28 bps to 7.23% in June, as several large assets fell delinquent, according to data firm Trepp. Six months ago, it sat at 6.64%, and one year ago, it was at 5.91%.
• The return of a Manhattan loan drove the multifamily commercial mortgage-backed securities rate down 27 basis points to 8.23% in June, according to Trepp. Six months ago, it sat at 8.08%, and one year ago, it was at 8.18%.
• The $539.5 million Yorkshire & Lexington Towers loan returned to the master servicer after a modification cured the defaults on the senior loan and subordinate mezzanine debt, according to a press release from rating organization KBRA.

Dive Insight:

The overall Trepp commercial real estate delinquency rate decreased 20 bps to 7.35% in June 2026. Retail rose 30 bps to 6.91%, and office increased 4 bps to 11.57%. Lodging fell 79 bps to 5.22%, and industrial declined 11 bps to 1.2%, according to Trepp.

The overall Trepp CRE CMBS special servicing rate increased by 34 bps in June to 11.2%. Lodging rose 44 basis points to 8.89%, office increased 36 bps to 17.11%, mixed use increased 28 basis points to 11.9% and industrial inched up 8 bps to 1.37%. Retail declined 5 bps to 1.37%.

While Trepp’s June numbers provided mixed messages for the slice of multifamily properties financed with CMBS, data from CRED iQ showed deteriorating conditions at banks with $9.78 billion in delinquencies in the first quarter.

The multifamily delinquency rate at FDIC-insured banks rose 5 bps from Q4 to 1.47% in Q1 2026. That ties Q1 2025 for the highest figure since Q3 2013. Still, it's well below the 5.9% in Q1 2010, when $12.68 billion was delinquent against a smaller loan base, according to CRED iQ.

Still, banks are growing their multifamily balance sheets. At FDIC-insured institutions, multifamily loans outstanding increased 0.9% quarter over quarter and 4.1% year over year to $665.3 billion in Q1, per CRED iQ.

“Banks are back in a really meaningful way,” Maximiliane Leachman, vice chair of CBRE’s debt and structured finance group, told Multifamily Dive.

Money center and local and regional banks are competing on new acquisitions and refinancings, according to Leachman. Lenders are also back in the construction debt market.

“Four years ago, I wasn’t even sending deals to banks,” Leachman said. “It wasn’t even worth it.”

But that’s changing.

“With swap rates below treasuries, banks have been able to win business while offering similar spreads to agencies, lowering the borrower’s all-in rate 30-40 bps,”  Leachman said. 

The agencies are continuing to win business, “but banks and debt funds are gaining meaningfully more market share” than they were in the last two years, according to Leachman.

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