Office loans posted the weakest maturity outcomes among major property types in the first quarter of 2026, Kroll Bond Rating Agency (KBRA) reported. Of the $2.21 billion in non-defeased conduit CMBS office loans that matured, 68% failed to pay off on time, highlighting ongoing office market distress. Conversely, KBRA reported, “our findings suggest that markets remain liquid for higher quality properties.”

Among office loans that paid off at maturity in Q1 2026, there were weighted average (WA) metrics of 96% occupancy, a debt service coverage ratio (DSCR) of 1.84 and a debt yield (DY) of 11%, reported KBRA. Although these metrics supported stronger maturity outcomes, they still trailed the credit profile of newly securitized debt.

In contrast, office loans that failed to pay off at maturity exhibited materially weaker credit profiles. These loans carried a WA DSCR of 1.26, DY of 7%, and substantially lower occupancy of 66%. “We view these loans as significantly overleveraged, with an average KBRA loan-to-value (KLTV) of 170% based on our proprietary collateral values,” KBRA reported.

The “extend and pretend” trend of multifamily loan forbearance will lead to a wave of maturities in a year or so, according to Gray Capital. The private equity real estate company has published a new report on an emerging wave of loan maturities in the multifamily market.

“Extend and pretend is coming to an end, and as lenders are increasingly incentivized to cease these practices, opportunities to invest in distressed properties will be elevated, but at the individual asset level rather than sector-wide,” said Spencer Gray, president and CEO of Gray Capital.

Gray Capital’s new report follows its previous research on loan maturities in 2023 and seeks to explain how the lending market handled last year’s wall of loan maturities and how the blunted effects of 2023’s loan maturity wave have been pushed forward. That’s due in no small part to the loan extensions, accommodations and workouts commonly referred to as “extend and pretend.”

Based on data from CoStar and the New York Federal Reserve, Gray Capital projects a new wave of loan maturities in late 2025, early 2026.

“Multifamily-specific data from CoStar shows an October 2025 spike in loan maturities that’s 25% larger than the October 2023 surge, which suggests that some of these 2023 loans were extended, contributing to that spike in October 2025,” said Matt Bastnagel, communications and marketing director at Gray Capital.