A fully leased building with Apple as its largest tenant just received a notice of default.
The $209 million Crossroads III loan was extended once, moved to special servicing in August, and received the notice on September 1.
It is part of a wider shift: office CMBS delinquency has reached 13.2%, while 51% of office loans sent to special servicing over the past year were still current when they arrived.
Passive Cash-Flowing Properties
Buy shares of investment properties, earn rental income & appreciation for anywhere from $100 to $20k — let Arrived take care of the rest.
Now the 10-year Treasury has hit 5.3%, its highest level since 2002, putting even more pressure on loans that need to refinance.
Pricing is resetting on the sales side too, where half of Los Angeles office deals closed at a loss and larger commercial assets sit 19.4% below their 2022 peak.
Here’s where lenders are moving loans early and where buyers are closing below prior prices:
🏢 Half of LA Office Sales Lose Value
📈 10-Year Treasury Hits 5.3%
🏘️ Multifamily Delinquencies Hit 20-Year High
🏙️ Small CRE Deals Near Record Prices
🏷️ Housing Price Cuts Hit 4-Year High
🚨 Office Loans Flag Trouble Before Default
Video of the Week: Bank Failures SKYROCKET | Banking Reset BEGINS
Chart of the Week: Cities with the Biggest Rent Decreases
Podcast of the Week: October Is The Best Time To NEGOTIATE In These 16 Markets
Half of LA Office Sales Close at a Loss
Half of Los Angeles office sales between Q2 2025 and Q2 2026 traded below the previous owner’s price, with losses rising to 79.2% among buildings larger than 100,000 square feet. 2nd Oct
Treasury Yields Put More Pressure on CRE
The 10-year Treasury hit 5.3%, its highest level since 2002, raising refinancing costs and increasing pressure on owners who now face tougher choices between adding equity, refinancing, or selling. 2nd Oct
Multifamily Delinquencies Hit a 20-Year High
Freddie Mac’s multifamily serious delinquency rate rose to 0.64% in August, its highest level in more than two decades and above its comparable Great Recession peak. 2nd Oct
Smaller CRE Deals Outperform Larger Assets
Smaller commercial properties sit just 0.5% below record pricing while the index tracking larger assets remains 19.4% below its 2022 peak, showing a widening split by deal size. 2nd Oct
Housing Price Cuts Hit a Four-Year High
Mortgage rates above 7% pushed the share of listings with price reductions to 20.8% in September as pending sales fell 4.1% and inventory climbed above 1.16 million homes. 2nd Oct
Office Loans Move to Servicing Before Default
Office CMBS delinquency reached 13.2% while 51% of loans transferred to special servicing over the past year were still current, showing lenders are acting months before missed payments or maturity failures.
Video of the week