The commercial real estate (CRE) market is experiencing another defining moment. In August 2025, the delinquency rate for office loans securitized into commercial mortgage-backed securities (CMBS) surged to 11.7%. This isn’t just a troubling figure—it’s the highest rate ever recorded, surpassing even the 10.7% peak during the Financial Crisis. According to Trepp, the industry is now grappling with a wave of defaults and distressed workouts across both office and multifamily sectors, reshaping how borrowers, investors, and lenders in commercial real estate must think about risk.