Your Daily Commercial Real Estate Briefing

Commercial Real Estate Sees Mixed Signals with Rising CMBS Delinquencies and Surging San Francisco Rents

• The delinquency rate for U.S. private label commercial mortgage-backed securities (CMBS) increased by 8 basis points to 7.7% in May, according to KBRA research. Despite this rise, the distress rate, which includes delinquent and specially serviced loans, saw a 17 basis point decline, and the multifamily delinquency rate notably dropped after previously reaching double digits.

  Businesswire

• San Francisco's commercial real estate market is undergoing significant shifts driven by the AI boom, compelling landlords of Class A office buildings to undertake renovations to attract younger tenants seeking pre-furnished spaces and extensive amenities. In a surprising counter-trend to national stability, the median price for a one-bedroom apartment in San Francisco surged 21% year-over-year, crossing the $4,000 per month mark in May.

  Therealdeal

• New York City Mayor Zohran Mamdani's "Block by Block" housing agenda, unveiled on May 30, aims to build and preserve 200,000 affordable housing units each over the next decade. The plan positions private developers as "clear winners" through proposed billions in housing investment and streamlined land-use reviews, signaling a dual approach of development and stricter oversight.

  Therealdeal

• The industrial sector continues to see robust activity, with several notable acquisitions on June 1, 2026, including Zilber's purchase of a 208,000 square foot industrial property in Little Chute, Wisconsin, and Cabot Properties' acquisition of a 1 million square foot industrial portfolio in Fort Worth, Texas. Goldman Sachs also acquired a new distribution center in Katy, Texas. Additionally, commercial and multifamily borrowing increased by 52% in the first quarter of 2026, as reported by the Mortgage Bankers Association (MBA).

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