Kena Betancur/VIEWpress Distress in a corner of the commercial mortgage market rose 440% in the last year. Loans packaged into commercial real estate CLOs saw a big uptick in distress. Multifamily and office borrowers accounted for the brunt of the distress. Distress levels in an important corner of the commercial real estate debt market have rocketed higher in the last year. Commercial mortgages packaged into collateralized loan obligations and sold to investors as bonds saw a distress rate of 8.6%  in January, marking a huge jump from the beginning of 2023 when the rate was 1.4%.