BondsMedium•6 October 2026•
1 min read
Office CMBS Delinquency Rate Hits 12.2% Surpassing Financial Crisis Peak
Key Facts
1The delinquency rate for office CMBS hit 12.2% in September, surpassing the peak levels seen during the Global Financial Crisis.
2A $1.1 billion loan backed by Hollywood office and studio properties owned by Blackstone and Hudson Pacific Properties entered maturity default.
The delinquency rate for office commercial mortgage-backed securities (CMBS) hit 12.2% in September, surpassing the peak levels seen during the Global Financial Crisis. ZeroHedge reported that the spike was driven by a $1.1 billion loan backed by Hollywood office and studio properties owned by Blackstone and Hudson Pacific Properties entering maturity default.
BX closed at $111.65 and HPP closed at $11.25 on October 5, 2026. The default occurs as major tenants like Netflix face upcoming lease expirations, complicating refinancing efforts in a high-interest-rate environment, with occupancy for the affected properties falling to 84.9% as of July.