Debt Yield Calculator
The metric CMBS conduits care about most. Debt Yield = NOI ÷ Loan Amount. Test your deal against property-type debt yield floors before formal CMBS application.
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Result
Indicative. Final terms depend on full 3-test underwriting (DSCR / LTV / debt yield), sponsor profile, and conduit pool composition.
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CMBS Conduit Debt Yield Floors by Property Type
| Property Type | Min Debt Yield | Best Execution | Typical Cap Rate |
|---|---|---|---|
| Multifamily 5+ unit | 7.5% | 8.0% | 4.5–6.5% |
| Industrial / logistics | 8.0% | 8.5% | 5.5–6.5% |
| Self-storage | 8.0% | 9.0% | 5.5–7.0% |
| Anchored retail | 8.5% | 9.0% | 6.0–7.5% |
| Office (Class A trophy) | 9.0% | 9.5% | 6.5–8.0% |
| Hotel / flagged hospitality | 10.0% | 11.0% | 7.0–9.0% |
| Mixed-use | 8.5% | 9.5% | 5.5–7.5% |
April 2026 CMBS conduit underwriting parameters. Floors vary by sponsor strength, market tier, lease structure, and conduit pool composition. PeerSense pre-clears actual pool fit before formal submission.
Why Debt Yield Matters More Than DSCR or LTV
Debt yield is the cleanest measure of leverage in commercial real estate underwriting. Unlike DSCR (which can be inflated by extending amortization or quoting a lower rate) and LTV (which depends on appraisal methodology and market timing), debt yield uses two unmanipulable inputs: actual NOI from the property's operating statements, and the actual loan amount.
CMBS bondholders need a clean cash-flow-vs-debt measurement that survives appraisal disputes and amortization gaming. Debt yield delivers it. That's why CMBS conduits care more about debt yield than any other metric, and why the debt yield test often binds the deal before DSCR or LTV does.
When Debt Yield Binds the Deal
On multifamily deals at 5.0–6.0% cap rates, debt yield often binds first — the low cap rate compresses NOI, and debt yield demands a higher NOI ÷ loan ratio than the LTV cap can deliver. On office or hotel deals where cap rates are higher (7.0%+) but LTV ceilings are lower (60–65%), LTV often binds first. On rising-rate deals, DSCR often binds because debt service grows faster than NOI.
The strategic implication: pre-run all three tests before lender submission. The smallest result is your maximum loan. Restructure the deal (smaller loan, lower LTV, IO start, additional equity) before the conduit sees it.
Ready to run the full 3-constraint test on your deal?
PeerSense pre-clears DSCR, LTV, and debt yield against current conduit pool composition before formal CMBS submission. Pre-cleared files close 14–28 days faster than raw inquiries and price 25–50 bps tighter.
Read the CMBS Graduation Strategy