Macro EconomyMedium•26 September 2026•
1 min read
US Office Loan Defaults Surpass 2008 Levels as Paper Losses Turn Real
Key Facts
1Office loan delinquencies in CMBS have reached a 12% rate, surpassing levels seen during the 2008 financial crisis.
2Chicago’s Aon Center appraisal dropped 73% from its 2015 purchase price to just $195 million.
3Approximately $64 billion of office CMBS loans mature this year and next, with $40 billion already delinquent or flagged as troubled.
Bloomberg reported that office loan delinquencies in commercial mortgage-backed securities (CMBS) have reached a 12% rate, surpassing the levels seen during the 2008 financial crisis. According to Trepp data, approximately $64 billion of office CMBS loans are set to mature this year and next, with $40 billion of that total already flagged as delinquent or troubled.
Major properties have seen drastic valuation cuts, with Chicago’s Aon Center appraisal dropping 73% from its 2015 purchase price to a current valuation of $195 million. This shift from paper losses to realized defaults is driven by elevated interest rates and low office occupancy, which have rendered refinancing impossible for many property owners.