CRE Distress Stays Contained | September 2025 CRE Distress Update
- The Vara Group
- Sep 5
- 1 min read
Updated: Sep 26
The September 2025 CRE Distress Update highlights how delinquency and distress trends continue to evolve across property types. While CMBS delinquency has risen, overall levels remain well below historical highs, and distress sales represent only a small share of transaction activity.
🔹 CMBS Delinquency at 7.2% far below the 2012 peak of 10.3%
🔹 $122B in CRE Distress easing slightly from Q1 2025, office = 47%
🔹 Distress Sales Only 2.6% of total trade volume, historically low
Despite modest increases in delinquency, buyers are increasingly eyeing opportunities for higher-quality assets at attractive cap rates. Lender flexibility and workout options continue to limit forced sales, keeping distress contained compared to the post-Global Financial Crisis environment.
