What is the CMBS loan minimum size in 2026?

Public CMBS floor at PeerSense is $10 million and up. The economics of securitization favor larger loans. $10 million plus deals typically receive the most competitive pricing, with the tightest spreads at $25 million plus when sponsor and asset quality justify SASB execution. Files below $10 million are a pass on this desk.

CMBS conduit vs institutional fixed rate. Which is better?

CMBS conduit and life company loans are the two main permanent financing options for stabilized commercial real estate. Institutional portfolio lenders typically win on rate (25 to 75 bps tighter than CMBS conduit) because they match fund long duration insurance liabilities and selectively pick top quality assets in primary markets. CMBS conduits win on leverage (up to 75% LTV vs their 60 to 70%), close speed (45 to 60 days vs 60 to 90), willingness on Class B properties and secondary markets, and IO flexibility. Decision rule: trophy stabilized Class A in primary market → institutional fixed rate lender for rate; everything else (Class B, secondary market, higher leverage, IO needed, faster close) → CMBS conduit for execution and proceeds.

CMBS conduit vs institutional fixed rate for stabilized industrial. Which wins on $25M+ deals?

On stabilized $25M+ industrial, select institutional balance sheet lenders can win on rate. They are 25 to 75 bps tighter than CMBS conduits because they match fund long duration liabilities and hand pick trophy assets. CMBS conduits win on LTV (up to 75% vs their 60 to 70%), close speed (45 to 60 days vs their 60 to 90), and willingness on second tier markets and Class B properties they pass on. Decision rule: trophy stabilized Class A in primary market → institutional balance sheet for rate; everything else → CMBS conduit for execution + leverage.

How is a CMBS loan sized?

Every CMBS loan is sized by the binding constraint of three independent tests: (1) DSCR ≥ 1.25 to 1.30x. NOI must cover debt service with margin, (2) LTV ≤ 65 to 75% by property type, and (3) Debt yield ≥ 7.5 to 11% by property type (multifamily lowest, hotel highest). Run all three calculations. The SMALLEST resulting loan amount is the maximum CMBS proceeds. Submitting without pre running these three tests wastes 30 to 60 days of underwriting on deals that won't pencil.

What LTV do CMBS lenders typically require?

CMBS loans are generally structured at 60 to 75% LTV, with the most competitive pricing at 60 to 65% LTV. Borrowers contributing 25 to 40% equity with strong DSCR (1.25x+) receive the best terms.

Are CMBS loans non recourse?

Yes. CMBS loans are structured as non recourse with standard bad boy carve out guarantees. The borrower is not personally liable for repayment beyond the property itself.

What are bad boy carve outs in a CMBS loan?

Bad boy carve out provisions are standard in every CMBS loan agreement and convert the loan to full or partial recourse if the borrower commits specific acts. Traditional triggers include fraud, misappropriation of insurance proceeds, diversion of rental income, unauthorized secondary financing, voluntary bankruptcy without lender consent, and unauthorized property transfers. Modern CMBS carve out language has expanded into operational lapses: late real estate tax payments, late insurance premium submissions, and missed financial reporting deadlines have all appeared as full recourse triggers in recent loan documents. These aren't obscure fine print traps. Borrowers who review them for the first time at closing are at a disadvantage. Working with an advisor who has reviewed these provisions across multiple closings reduces the risk of discovering a problematic clause too late to negotiate a cure period.

What are the real upfront costs of a CMBS loan?

Origination fees on conduit CMBS run 0.25% to 1.00% of the loan amount, with lower percentages on $10M+ deals. Beyond origination: lender + borrower legal fees ($25K to $100K+), appraisal ($5K to $20K), environmental and property condition reports ($3K to $10K each), and an application or good faith deposit ($5K to $25K). Total upfront costs land between 1.5% and 3% of the loan amount. On a $15M loan, that's $225K to $450K in friction before the loan funds, meaningful enough that the break even analysis must account for it before any term sheet is signed.

What are the prepayment penalties on a CMBS loan?

CMBS loans are not designed to be paid off early. The lockout period (typically the first 24 months) prohibits prepayment entirely. After the lockout, prepayment triggers either defeasance or yield maintenance, both expensive. Defeasance requires purchasing a portfolio of U.S. Treasury securities to replace the loan's cash flows for bondholders, costing $50K to $150K in legal/advisory fees plus the spread between your loan rate and Treasury yields. Yield maintenance requires paying the lender the difference between contracted rate and current reinvestment rate, often 1% to 5% of the outstanding balance. Loan assumption (a qualified buyer assumes the CMBS loan at sale) is typically the most cost effective exit at roughly 0.50% to 1.00% of balance.

When is a CMBS loan the wrong product?

CMBS is not a value add product. If the property has meaningful vacancy, a lease up story, pending capital improvements, or a short intended hold before repositioning, a bridge loan or bank loan is the correct tool, not CMBS. Trying to force a stabilization story to access CMBS pricing is one of the most common sponsor mistakes. Once your loan is securitized, secondary financing is prohibited post closing and modifications require approval from a special servicer with no commercial obligation to cooperate on your timeline. A borrower who needs operational flexibility during an active business plan will find the CMBS structure an obstacle, not an asset.

What is defeasance on a CMBS loan?

Defeasance is the process of substituting U.S. Treasury securities for the loan collateral, replacing the property with government bonds that replicate the remaining payment stream. It is the standard prepayment mechanism for CMBS loans.

Why do CMBS rates range from 6% to 15% on the same deal?

Different capital sources price different risk profiles. A CMBS conduit quoting 6.5% is pricing for a stabilized asset with 35%+ equity from an experienced sponsor. A bridge lender quoting 14% is pricing for higher leverage, shorter term, and transitional execution. Structuring the deal correctly can move pricing from bridge territory into conduit territory, saving hundreds of thousands annually on a $10M+ deal.

How much down payment do I need for a CMBS loan?

CMBS conduits typically require 25 to 40% equity (60 to 75% LTV). The most competitive pricing goes to borrowers at 35 to 40% down. Below 30% equity, deals often shift to bridge or debt fund pricing at significantly higher rates. On a $10M loan, the difference between 25% and 35% down can save $200,000+ per year in interest.

What is the difference between a CMBS loan and a bridge loan?

CMBS loans are long term fixed rate permanent financing (5 to 10 years) for stabilized properties at 6 to 9%. Bridge loans are short term floating rate capital (12 to 36 months) for transitional properties at 8 to 15%. Many strong CMBS deals start as bridge loans. The bridge provides capital to stabilize, then the asset transitions into permanent CMBS at a fraction of the bridge rate.

How do tenant lease terms affect CMBS underwriting?

Tenant lease terms are one of the most critical CMBS underwriting factors beyond LTV and DSCR. Conduits want major tenant leases to extend at least 5 years beyond loan maturity. Long remaining terms combined with strong tenant store sales and significant tenant improvements (TI) build the strongest case. They prove tenants are profitable and committed. Short remaining terms, below market sales, or tenants in vanilla shell space with no buildout investment signal rollover risk that widens spreads or kills the deal.

Can you get a CMBS loan on a ground lease property?

Yes, but ground lease properties face additional scrutiny. The ground lease must extend at least 10 to 15 years beyond loan maturity, include lender protections (cure rights, new lease provisions, notice requirements), and be either subordinate or contain institutional grade safeguards. Ground lease rent resets to fair market value can reduce underwritten NOI significantly. Without proper ground lease documentation, many CMBS conduits will decline the deal entirely.

How is a CMBS loan securitized?

After origination, your CMBS loan is sold within 30 to 120 days into a REMIC (Real Estate Mortgage Investment Conduit) trust alongside 30 to 100 other commercial mortgages. The REMIC issues bond tranches rated AAA down through B and NR by Moody's, S&P, Fitch, KBRA, and DBRS Morningstar. Senior AAA bonds are bought by insurance companies and pension funds; the B piece (first loss) is bought by a concentrated group of specialist B piece investors. The trustee (a large institutional trust bank) holds collateral on behalf of bondholders.

What is the difference between a conduit CMBS deal and a SASB deal?

A conduit CMBS deal pools 30 to 100 commercial mortgages from many borrowers into a single securitization, with diversification generating rating agency credit. A SASB (Single Asset, Single Borrower) deal securitizes one large loan, typically $150M+, on a single trophy asset or one borrower's portfolio. SASB pricing is generally tighter because investors see one credit, full documentation, and bespoke covenants. Conduit is the right execution for $10 million to $100 million deals; SASB is the right execution for $150M+ trophy or portfolio deals.

What is the role of the master servicer vs the special servicer?

The master servicer (one of a handful of large bank servicing platforms) handles all routine cash management: monthly P&I collection, reserves, routine consents. The special servicer (one of a concentrated group of workout shops) only activates if a loan goes into monetary default or material modification. The special servicer has authority to extend, modify, foreclose, or sell, and is typically controlled by the B piece buyer.

How do CMBS conduits size your maximum loan?

CMBS conduits run two underwriting tests in parallel: a DSCR test and an LTV test. DSCR test: Max Annual Debt Service = NOI ÷ DSCR target, then convert to loan amount via the mortgage constant at the quoted rate and amortization. LTV test: Max Loan = Property Value × Max LTV. The final loan is the lower of the two. Example: a $36.5M Class B suburban office at 1.35x DSCR and 65% LTV with $2.27M underwritten NOI sizes to ~$21.3M (DSCR constrained) at 6.85% / 30 yr amort, vs $23.7M (LTV constrained). The DSCR test binds.

What are CMBS loan interest rates in 2026?

CMBS conduit all in coupons run 5.50% to 7.10% as of May 2026, priced at 175 to 275 bps over the 10 year Treasury (4.25% baseline) depending on property type, sponsor profile, and leverage. By property type: multifamily and industrial price tightest at 5.50 to 6.30%, self storage 5.65 to 6.65%, flagged limited service hotel 5.85 to 6.85%, grocery anchored retail 5.95 to 6.95%, and Class A office 6.00 to 7.10%. Loans are 10 year fixed (5- and 7 year tenors available), non recourse with bad boy carve outs, on 25 to 30 year amortization. The most competitive pricing goes to stabilized assets at 60 to 65% LTV with 1.25x+ DSCR and debt yield clearing the property type floor.

What LTV do CMBS lenders typically require?

CMBS loans are generally structured at 60 to 75% LTV, with the most competitive pricing at 60 to 65% LTV. Borrowers contributing 25 to 40% equity and demonstrating strong DSCR (typically 1.25x or higher) will receive the best conduit terms. Higher leverage is available on select property types with experienced sponsors.

Are CMBS loans recourse or non recourse?

CMBS loans are structured as non recourse, meaning the borrower is not personally liable for repayment beyond the property itself. However, standard "bad boy" carve out guarantees apply. These create personal liability only in cases of fraud, misrepresentation, bankruptcy filing, or environmental contamination. A creditworthy guarantor is required for the carve outs.

What is defeasance on a CMBS loan?

Defeasance is the process of substituting U.S. Treasury securities for the loan collateral, effectively replacing the property with government bonds that replicate the remaining payment stream. It is the standard prepayment mechanism for CMBS loans and can be costly depending on the rate environment. Understanding defeasance costs before closing is critical to structuring the right term length.

How long does it take to close a CMBS loan?

CMBS loans typically close in 45 to 90 days from application, depending on property complexity, third party report timelines (appraisal, environmental, engineering), and conduit pipeline. A well prepared deal package with complete financials can accelerate this timeline. PeerSense ensures your submission meets conduit standards from the outset.

What property types do CMBS conduits lend on?

CMBS conduits lend on office, retail, multifamily, industrial, self storage, hospitality, data centers, and mixed use properties. Conduit appetite for specific property types varies by quarter based on bond market conditions and portfolio concentration. PeerSense tracks real time conduit preferences to match your asset with the right lender.

What is the difference between CMBS and agency lending?

Agency lending (Fannie Mae, Freddie Mac, HUD) is limited to multifamily properties and offers competitive terms for qualifying apartment assets. CMBS lends across all commercial property types. For multifamily borrowers, PeerSense evaluates both agency and conduit options to determine which execution delivers the best terms for your specific deal.

Does PeerSense charge upfront fees for CMBS advisory?

PeerSense's compensation is established upfront in a written agreement and paid at closing. The initial consultation and deal assessment are complimentary.

Why do CMBS rates range from 6% to 15% on the same deal?

Different capital sources price different risk profiles. A CMBS conduit quoting 6.5% is pricing for a stabilized asset with 35%+ equity from an experienced sponsor. A bridge lender quoting 14% on the same property is pricing for higher leverage, shorter term, and more borrower flexibility. PeerSense submits qualifying deals to multiple capital sources simultaneously and routinely sees 5 to 9 percentage point spreads on identical properties. The advisory value is structuring the deal to access the most competitive tier available.

How much down payment do I need for a CMBS loan?

CMBS conduits typically require 25 to 40% equity (60 to 75% LTV). The most competitive conduit pricing (rates in the low to mid 6% range) goes to borrowers contributing 35 to 40% equity on stabilized trophy assets. Below 30% equity, deals often shift into bridge or debt fund territory at significantly higher rates. On a $10 million loan, the difference between 25% down and 35% down can save $200,000+ per year in interest expense, over $2 million across a 10 year hold.

What is the difference between a CMBS loan and a bridge loan?

CMBS loans are long term fixed rate permanent financing (5 to 10 year terms) designed for stabilized commercial properties, with rates typically from 6.25% to 9%. Bridge loans are short term floating rate capital (12 to 36 months) for transitional, value add, or time sensitive acquisitions, with all in rates from 8% to 15%. Many of the strongest CMBS deals start as bridge loans. The bridge provides capital to acquire, renovate, and stabilize, then PeerSense transitions the asset into permanent CMBS financing at a fraction of the bridge rate.

What is defeasance and how much does it cost?

Defeasance replaces your property as collateral with U.S. Treasury securities that replicate your remaining loan payments. Cost depends on your loan rate versus current Treasury yields. When your rate is above Treasuries, defeasance is expensive (often 5 to 15% of the loan balance). When rates rise above your coupon, defeasance can actually be cheaper. PeerSense calculates your defeasance cost estimate as part of every CMBS refinance assessment.

What is the difference between defeasance and yield maintenance?

Yield maintenance is a direct cash penalty, the present value of remaining interest payments the lender loses. Defeasance is a collateral substitution. You purchase Treasury bonds that replicate the payment stream. In a low rate environment, defeasance costs more. In a high rate environment like 2026, yield maintenance often costs more. The cheapest exit depends entirely on the rate environment at the time of prepayment.

What are bad boy carve outs on a CMBS loan?

Bad boy carve outs are exceptions to the non recourse protection of a CMBS loan. They create personal liability for specific prohibited acts including but not limited to: fraud, misapplication of rents, voluntary bankruptcy filing, environmental contamination, failure to maintain insurance, failure to pay property taxes, and unauthorized transfers of collateral. Standard carve outs are "loss based": you are liable only for actual damages. "Springing" carve outs are more severe. The entire loan becomes personal recourse if triggered. Understanding which carve outs are in your loan documents is critical before signing.

How does the 2026 CMBS maturity wall affect my refinance?

Over $100 billion in CMBS loans are maturing in 2026, the largest maturity wave since the financial crisis. This creates both risk and opportunity. Risk: special servicers are overwhelmed and extensions are harder to negotiate. Opportunity: conduit lenders are competing aggressively for refinance volume, meaning borrowers with strong assets (65% LTV, 1.25x+ DSCR) are getting the most competitive pricing in years. Start your refinance process at least 12 months before maturity.

Who are the major CMBS originators in 2026?

The conduit market runs in two tiers: roughly eight Tier 1 money center investment banks that lead the benchmark securitization shelves, and a second tier of specialty and regional originators focused on small balance and niche property types. Which shelf actually wants a given loan depends on its pool composition needs in the quarter you close, which is not visible publicly and shifts constantly. Total 2025 issuance reached $125.6B per Trepp, the highest annual print since 2007. PeerSense tracks shelf appetite on a rolling basis and routes each deal to the conduit reading for that property type at that moment.

How is a CMBS loan securitized? What is a REMIC?

After origination, your CMBS loan is sold within 30 to 120 days into a Real Estate Mortgage Investment Conduit (REMIC) trust along with 30 to 100 other commercial mortgages. The REMIC issues bond tranches rated AAA down to NR (the B piece) by Moody's, S&P, Fitch, KBRA, and DBRS Morningstar. Senior AAA bonds (~60% of the pool) are bought by insurance companies and pension funds at tight spreads (T+78 to T+95). The B piece (~12% of the pool, first loss) is bought by a concentrated group of specialist B piece investors. The trustee (a large institutional trust bank) holds collateral on behalf of bondholders. This securitization structure is why CMBS loans have rigid prepayment penalties: bondholders need predictable cash flows.

What is the difference between a conduit CMBS deal and a SASB deal?

A conduit CMBS deal pools 30 to 100 commercial mortgages from many borrowers into a single securitization. Diversification across property types and geographies generates the rating agency credit. A SASB (Single Asset, Single Borrower) deal securitizes one large loan ($150M+) on a single trophy asset or one borrower's portfolio. SASB pricing is generally tighter for the borrower because the bond investor sees one credit, full documentation, and bespoke covenants. Conduit is the right execution for $10 million to $100 million deals; SASB is the right execution for $150M+ trophy or portfolio deals.

What is the role of the master servicer vs the special servicer on a CMBS loan?

The master servicer (one of a handful of large bank servicing platforms) handles all routine cash management on your loan: collecting monthly P&I, managing reserves, processing routine consents like easements or immaterial transfers. The special servicer (one of a concentrated group of workout shops) only activates if your loan goes into monetary default, materially modifies, or otherwise leaves the box. The special servicer has authority to extend, modify, foreclose, or sell the loan, and is often controlled by the B piece buyer who absorbs first losses. For borrowers, this means: build flexibility into the loan documents before closing, because post closing modifications route through the Pooling and Servicing Agreement.

60 to 65% LTV. Cash Flowing. Non Recourse. The Best Terms in Commercial Real Estate.

CMBS loans start at 10 million dollars. PeerSense is a capital advisory firm, not a lender. It places files with direct capital sources, and the client pays the fee. The preferred profile is 10 million dollars and up, with DSCR 1.25 or better.

Loan size: PeerSense works on loans of 10 million dollars and up, with DSCR 1.25 or better.
Common loan purposes: PeerSense Capital Data monitors capital source programs that cite refinance most often, followed by acquisition and recapitalization.
Sponsor contribution: Conduit placements generally involve sponsor cash equal to about 35 percent.
Public financing example: In May 2026, market notices reported a 1.9 billion dollar office refinancing completed by other parties.

PeerSense Capital Data review of public deal notices, October 2, 2026

Talk to PeerSenseSend the file and talk to PeerSense at (317) 452 6990.

/ 01: CMBS Conduit Capital Advisory

THE GOLD STANDARD · 60 to 65% LTV · CASH FLOWING

The CMBS conduit market is built for one borrower profile: 60 to 65% LTV, stabilized, cash flowing properties with a clean rent roll and 1.25x+ DSCR. That is the lane where the institutional bond market gives you the lowest cost of capital in commercial real estate, 10 year fixed, non recourse, fully assumable, with IO available for qualified deals.

PeerSense places stabilized refinances and acquisitions at the proper capitalization gold standard. Minimum 35 to 40% equity at acquisition. Stabilized occupancy 85%+. Sponsor net worth and liquidity validated. Deals outside this lane route to bridge until the property qualifies. Public floor is $10 million and up. Cash in about 35 percent.

Talk to PeerSense Run Your Numbers First Check If Your Deal Qualifies Call (317) 452 6990

Institutional capital advisory · PeerSense matches stabilized deals to a curated CMBS conduit network · Updated May 2026

Stabilized income property. 10 million and up. Cash in about 35 percent or better so LTV sits at 65 or under. Talk to PeerSense.

$10 million+

Public floor

Stabilized income property

60 to 65% LTV

Gold standard lane

Stabilized, cash flowing

10-yr fixed

Term

Non recourse · assumable

5.50 to 7.10%

May 2026 rate

All in conduit

Indicative as of October 1, 2026. Not a quote. Lenders set final pricing at underwriting.

Size your conduit loan before you talk to a lender

Three inputs. All three institutional constraints, LTV cap, DSCR minimum, and the debt yield floor most calculators skip.

CMBS Deal SizerPeerSense lender intel · July 2026

Property type

Annual stabilized NOI

Property value

Sponsor track record

Indicative readTight qualification

Max CMBS proceeds

$7.80M

Capped by the DSCR minimum

Indicative rate

7.90%

Typical conduit range

DSCR at max loan

1.25x

10.9% debt yield

The deal clears at the edge, 62% LTV and 1.25x DSCR. Sponsor strength and structure decide the pricing tier.

Your CMBS Lender Fit ReportPrepared from your inputs

Capital source lane

Rate positioning

Leverage guidance

Recommended path

Complimentary. We ask for your phone so a real advisor can walk it through with you. No credit pull, held in confidence.

Indicative only, as of October 1, 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense sources the file. The lender sets pricing. What these terms mean.

Indicative sizing from PeerSense lender intelligence, not an offer of terms or a quote. Final structure depends on full underwriting.

Talk to PeerSense

Occupancy, cash in, and what is on the books. No spam.

By submitting you agree to receive emails, calls, and texts about rates from PeerSense Capital Advisory. We do not sell or share your data.

Last updated: September 27, 2026·By Ed Freeman, Capital Advisor. PeerSense

Quick Answer

What is a CMBS loan and who qualifies at $10 million and above?

Public floor is $10 million. Cash in about 35 percent so LTV sits at 65 or under. Updated September 27, 2026. A CMBS loan on this desk is fixed rate conduit debt on stabilized commercial real estate. The May 2026 coupon print on this page, 5.50 percent to 7.10 percent, is not today's coupon. This desk does not publish a close calendar. Files below $10 million are a pass. Talk to PeerSense.

, PeerSense Capital Advisory · Updated September 27, 2026. The May 2026 coupon is not today's print.

What is the debt yield test in CMBS underwriting?

Debt yield = Net Operating Income ÷ Loan Amount, expressed as a percentage. It's the rate agnostic, amortization agnostic measurement of leverage that prevents over sizing on inflated cap rates. May 2026 CMBS conduit minimums by property type: multifamily 7.5 to 8.0%, industrial 8.0 to 8.5%, retail anchored 8.5 to 9.0%, office 9.0 to 9.5%, hotel 10.0 to 11.0%. The debt yield test often binds before DSCR or LTV does. Worked example on $25M Class B office: $2.27M underwritten NOI at 8.5% target debt yield = max loan $26.7M, but 70% LTV on $25M asset = $17.5M. LTV binds at $17.5M, not debt yield. On a multifamily comp at 8.5% cap rate, debt yield binds first.

What is the minimum loan size for a CMBS loan?

Public CMBS floor on this desk is $10 million. Files below $10 million are a pass. Tightest spreads at $25 million plus where SASB becomes available.

What is the prepayment penalty on a CMBS loan?

CMBS loans carry one of the most restrictive prepayment structures in commercial real estate. Years 1 to 2 are a hard lockout with no prepayment permitted. After the lockout, prepayment triggers either defeasance or yield maintenance, both expensive. Defeasance requires buying a portfolio of U.S. Treasury securities that replicate the loan's remaining cash flows for bondholders, with $50K to $150K in legal and advisory friction plus the spread between the loan rate and Treasury yields. Yield maintenance pays the lender the difference between the contracted rate and current reinvestment rate, often 1% to 5% of outstanding balance. Loan assumption at sale is typically the cheapest exit at 0.50% to 1.00% of balance.

Can a CMBS loan be assumed when the property sells?

Yes, CMBS loans are designed to be assumable, and assumption is the most cost effective exit for a stabilized portfolio holder. The buyer must qualify under the existing CMBS underwriting standards (1.25x+ DSCR, 60 to 75% LTV, debt yield floor by property type, net worth and liquidity tests, prior comparable experience) and execute a substitute non recourse carve out guarantee. Assumption fees typically run 0.50% to 1.00% of the outstanding balance plus $25K to $75K in legal and servicer fees. Approval timelines run 60 to 90 days through the master and special servicer. Compared to defeasance or yield maintenance, assumption preserves the below market coupon for the buyer and lets the seller exit without prepayment penalty.

Quick Answer

Which lenders offer CMBS loans in 2026?

Public floor is $10 million. Cash in about 35 percent so LTV sits at 65 or under. Updated September 27, 2026. The May 2026 coupon print on this page, 5.50 to 7.10 percent, is not today's coupon. This desk does not publish a close calendar. Talk to PeerSense.

Money center bank conduit shelves: the deepest programs, tightest spreads on multifamily and industrial (5.50 to 6.30% all in, May 2026).
Investment bank conduits: competitive on hotel, retail, and office where pool diversification needs the collateral (5.85 to 7.10%).
Independent specialty CMBS originators: property types the major shelves pass on. Public floor is still $10 million.
SASB desks: single asset single borrower execution for $150M+ trophy assets and portfolios, generally the tightest pricing at that scale.

PeerSense sources capital through a curated network of commercial lenders and capital sources and places each stabilized deal with the conduit pricing that property type tightest that quarter, with the three constraint sizing (DSCR, LTV, debt yield) run before any lender submission.

CMBS Conduit Rates by Property Type, May 2026

As of April 27, 2026

Program	Current Rate	Term	Loan Size	Best For
Multifamily CMBS	5.50 to 6.30%	10-yr fixed	$10 million and up	Stabilized garden, mid rise, senior
Industrial CMBS	5.50 to 6.30%	10-yr fixed	$10 million and up	Big box, last mile, distribution
Self Storage CMBS	5.65 to 6.65%	10-yr fixed	$10 million and up	Climate controlled, drive up, mixed
Hotel CMBS (limited service)	5.85 to 6.85%	10-yr fixed	$10 million and up	Marriott / Hilton / IHG flags
Retail CMBS (grocery anchored)	5.95 to 6.95%	10-yr fixed	$10 million and up	Necessity based shopping centers
Office CMBS (Class A)	6.00 to 7.10%	10-yr fixed	$10 million and up	Trophy CBD, life sciences conversion

Multifamily CMBS5.50 to 6.30%
Term
10-yr fixed
Loan Size
$10 million and up
Best For
Stabilized garden, mid rise, senior
Industrial CMBS5.50 to 6.30%
Term
10-yr fixed
Loan Size
$10 million and up
Best For
Big box, last mile, distribution
Self Storage CMBS5.65 to 6.65%
Term
10-yr fixed
Loan Size
$10 million and up
Best For
Climate controlled, drive up, mixed
Hotel CMBS (limited service)5.85 to 6.85%
Term
10-yr fixed
Loan Size
$10 million and up
Best For
Marriott / Hilton / IHG flags
Retail CMBS (grocery anchored)5.95 to 6.95%
Term
10-yr fixed
Loan Size
$10 million and up
Best For
Necessity based shopping centers
Office CMBS (Class A)6.00 to 7.10%
Term
10-yr fixed
Loan Size
$10 million and up
Best For
Trophy CBD, life sciences conversion

Rates indicative as of May 2026 across the active CMBS conduit shelves PeerSense tracks. Spread over 10-yr Treasury 175-275 bps depending on property type, sponsor profile, leverage. 10Y Treasury baseline 4.25%.

See full daily updated CMBS loan rates, compare across all programs at the Commercial Lending Rates Hub, or see how to pick the right conduit at Best CMBS Lenders 2026.

2026 Market Data

CMBS Issuance 2025: $125.6B (highest since 2007, per Trepp)Conduit AAA Spread: +78 bpsCRE Distress Rate: 11.98% (Jan 2026)Maturity Wall: $936B total CRE debt maturing in 2026

What Is CMBS Lending?

Commercial Mortgage Backed Securities (CMBS) loans are commercial real estate loans originated by conduit lenders, pooled together, and sold to investors as bonds. For borrowers, CMBS offers non recourse, fixed rate financing on stabilized commercial properties at competitive spreads, often the most efficient permanent capital available for institutional quality assets.

Non Recourse

CMBS loans are typically non recourse, meaning the borrower's personal assets are not at risk beyond standard "bad boy" carve outs. The property is the primary collateral.

Fixed Rate Terms

Lock in 5, 7, or 10 year fixed rates with predictable debt service. CMBS spreads are typically tighter than balance sheet lenders on stabilized assets.

Scale

CMBS conduits lend on deals from $10 million and up across all major property types. Portfolio and single asset executions are both available.

DEAL TYPES

CMBS Deal Structures We Place

From stabilized acquisitions to bridge to conduit takeouts, PeerSense matches your deal with the right conduit execution.

Stabilized CRE Acquisition

Acquiring a performing commercial property with in place cash flow. CMBS conduits compete aggressively on stabilized assets with strong DSCR and occupancy.

Portfolio Refinance

Consolidate or refinance multiple commercial properties through a single CMBS execution. Ideal for borrowers looking to optimize their capital stack across a portfolio.

Single asset refinance

Refinance an existing commercial mortgage at maturity or to capture improved property performance. CMBS offers competitive long term fixed rates on stabilized assets.

Bridge to conduit takeout

Transitioning from bridge or construction financing into permanent CMBS debt. PeerSense structures the bridge with the conduit takeout in mind from day one.

Cash out refinance

Extract equity from stabilized commercial assets while locking in long term fixed rate financing. CMBS lenders will underwrite to current property performance.

Transitional to Stabilized

Properties nearing stabilization that need permanent financing lined up. We work with conduits early to ensure a smooth transition from value add to permanent capital.

Typical CMBS Loan Terms

CMBS conduit loans are structured for stabilized commercial properties with predictable cash flow. Public floor is $10 million and up. Cash in about 35 percent.

Loan Range

$10 million and up

Single asset and portfolio executions across all major commercial property types. Public floor is $10 million and up.

Loan to Value

60 to 65% LTV

Sweet spot for conduit pricing. Cash in about 35 percent or better so LTV sits at 65 or under.

Cash In

About 35 percent

Cash in about 35 percent or better. Thin equity sits. Well capitalized sponsors receive the most competitive conduit terms.

Term Length

5 / 7 / 10 Year

Fixed rate terms with 25 to 30 year amortization schedules. Interest only periods available

Rate Range

6.25% to 9%

Conduit CMBS fixed rates. 6.25% is best case for experienced sponsors at 60% LTV on stabilized trophy assets. Most conduit deals price in the 7 to 9% range depending on property type, occupancy, LTV, and sponsor track record

Recourse

Non Recourse

Standard non recourse with customary bad boy carve out guarantees

Prepayment

Defeasance / Yield Maintenance

CMBS loans use defeasance (replacing property collateral with Treasury bonds) for early exits. In high rate environments, negative defeasance can actually benefit borrowers financially

Assumability

Fully Assumable

CMBS loans are fully assumable. Buyers can take over your low rate loan at sale, which is a major selling point in high rate environments and can increase your property value

Understanding Defeasance: The Non Recourse Exit Strategy

Because CMBS loans are securitized into bonds, they cannot simply be paid off early. Bondholders expect a set interest stream. Defeasance is the process of replacing the real estate collateral with U.S. Treasury bonds that replicate the remaining payment schedule, freeing the property for sale or refinance before maturity.

In high rate environments (2024 to 2026), negative defeasance can turn a penalty into a profit. The cost of purchasing the required Treasury bonds may be lower than the loan's principal balance. The process requires a successor borrower entity and specialized counsel, but for well capitalized sponsors, it is a proven path to early exit. PeerSense structures every conduit execution with your hold period and exit strategy in mind.

Underwriting Matrix

CMBS Underwriting Parameters by Property Type

Indicative conduit CMBS terms for stabilized commercial real estate. Actual deal pricing varies with sponsor track record, tenant credit, market spreads, and cap ex reserves. Rates quoted are fixed coupon, non recourse, 10 year execution.

Property Type	Max LTV	Min DSCR	Term	Amortization	Rate Range	Recourse
Multifamily (stabilized)	75%	1.25x	5 / 7 / 10 yr	30 yr	6.25 to 7.50%	Non recourse
Office (Class A stabilized)	65%	1.35x	5 / 7 / 10 yr	25 to 30 yr	7.00 to 9.00%	Non recourse
Retail (grocery anchored)	70%	1.25x	5 / 7 / 10 yr	30 yr	6.50 to 8.00%	Non recourse
Retail (unanchored)	65%	1.30x	5 / 10 yr	25 to 30 yr	7.50 to 9.50%	Non recourse
Industrial / Warehouse	70%	1.25x	5 / 7 / 10 yr	30 yr	6.50 to 7.75%	Non recourse
Hospitality (flagged, stabilized)	65%	1.40x	5 / 7 / 10 yr	25 to 30 yr	6.75 to 9.00%	Non recourse
Self Storage	70%	1.30x	5 / 7 / 10 yr	30 yr	6.75 to 8.50%	Non recourse
Mixed Use (with multifamily)	70%	1.25x	5 / 7 / 10 yr	30 yr	6.75 to 8.50%	Non recourse
Mobile Home Park	70%	1.30x	5 / 7 / 10 yr	30 yr	6.75 to 8.50%	Non recourse

Multifamily (stabilized)

6.25 to 7.50% · 75% LTV

Max LTV: 75%
Min DSCR: 1.25x
Term: 5 / 7 / 10 yr
Amortization: 30 yr
Rate Range: 6.25 to 7.50%
Recourse: Non recourse

Office (Class A stabilized)

7.00 to 9.00% · 65% LTV

Max LTV: 65%
Min DSCR: 1.35x
Term: 5 / 7 / 10 yr
Amortization: 25 to 30 yr
Rate Range: 7.00 to 9.00%
Recourse: Non recourse

Retail (grocery anchored)

6.50 to 8.00% · 70% LTV

Max LTV: 70%
Min DSCR: 1.25x
Term: 5 / 7 / 10 yr
Amortization: 30 yr
Rate Range: 6.50 to 8.00%
Recourse: Non recourse

Retail (unanchored)

7.50 to 9.50% · 65% LTV

Max LTV: 65%
Min DSCR: 1.30x
Term: 5 / 10 yr
Amortization: 25 to 30 yr
Rate Range: 7.50 to 9.50%
Recourse: Non recourse

Industrial / Warehouse

6.50 to 7.75% · 70% LTV

Max LTV: 70%
Min DSCR: 1.25x
Term: 5 / 7 / 10 yr
Amortization: 30 yr
Rate Range: 6.50 to 7.75%
Recourse: Non recourse

Hospitality (flagged, stabilized)

6.75 to 9.00% · 65% LTV

Max LTV: 65%
Min DSCR: 1.40x
Term: 5 / 7 / 10 yr
Amortization: 25 to 30 yr
Rate Range: 6.75 to 9.00%
Recourse: Non recourse

Self Storage

6.75 to 8.50% · 70% LTV

Max LTV: 70%
Min DSCR: 1.30x
Term: 5 / 7 / 10 yr
Amortization: 30 yr
Rate Range: 6.75 to 8.50%
Recourse: Non recourse

Mixed Use (with multifamily)

6.75 to 8.50% · 70% LTV

Max LTV: 70%
Min DSCR: 1.25x
Term: 5 / 7 / 10 yr
Amortization: 30 yr
Rate Range: 6.75 to 8.50%
Recourse: Non recourse

Mobile Home Park

6.75 to 8.50% · 70% LTV

Max LTV: 70%
Min DSCR: 1.30x
Term: 5 / 7 / 10 yr
Amortization: 30 yr
Rate Range: 6.75 to 8.50%
Recourse: Non recourse

Indicative only, as of May 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense sources the file. The lender sets pricing. What these terms mean.

Indicative ranges as of May 2026. Individual deal pricing depends on LTV, DSCR, property type, tenant credit, sponsor track record, and market spreads at the time of rate lock. Contact PeerSense for a deal specific indication.

DEEP UNDERWRITING

What CMBS Conduits Underwrite: Beyond LTV and DSCR

LTV and DSCR get your deal in the door. But CMBS conduits underwrite the durability of your cash flow, not just today's numbers. The real question they're answering: will these tenants still be paying rent in year 8 of a 10 year loan? Here's what separates deals that close at par from deals that stall in committee.

What Builds the Case

Long Remaining Lease TermsIdeally 5+ years beyond loan maturity. A 10 year CMBS loan backed by tenants with 15 year remaining terms is the gold standard. The conduit sees zero rollover risk during the loan's life.
Strong Tenant Store SalesProves the tenant is profitable at that specific location. A grocery anchor doing $600/SF in sales isn't leaving. That store is a top performer in their portfolio. Conduits request sales reports for exactly this reason.
Significant Tenant Improvements (TI)When a tenant invests $1M+ building out their space (custom kitchens, medical equipment, specialized fixtures), they've made a commitment that lease terms alone don't capture. Heavy TI signals the tenant is staying.
Credit Tenancy (National Tenants)Investment grade corporate guarantees (Kroger, CVS, Starbucks) mean rent payment is backed by a rated balance sheet, not a local operator's checking account. Credit tenancy produces near bond like cash flow profiles.
Sustainable Rent to Sales RatioOccupancy cost below 8 to 10% of tenant sales means the rent is affordable relative to revenue. A tenant paying $25/SF when they're doing $400/SF in sales has no economic reason to vacate. The space is profitable.

The combination matters. A tenant with long remaining lease terms, strong store sales, and significant TI investment creates a layered case that no single metric provides alone. Conduits underwrite the whole picture.

What Kills the Deal

Short Remaining Lease TermIf major tenant leases expire before or during the loan term, the conduit sees the deal as a ticking clock. A 10 year CMBS loan with a major tenant rolling in year 3 is a non starter for most conduits.
Low Value Tenants with Expiring LeasesLocal tenants on month to month or 1 to 2 year leases produce unpredictable cash flow. The conduit can't model exit risk when 40% of revenue could vanish with 90 days' notice.
High Vacancy or Recent Tenant Turnover85% occupancy is the floor, but recent departures signal something worse: the property may be losing relevance in its trade area. Conduits dig into trailing occupancy, not just the snapshot.
Below Market Tenant SalesIf the anchor is doing $300/SF when the chain average is $500/SF, that location is underperforming, and the tenant knows it. Below market sales increase the probability that the tenant will not renew, regardless of lease term.
No Tenant Improvements (Easy to Walk Away)A tenant in vanilla shell space with no buildout investment has no switching cost. When the lease expires, there's nothing anchoring them to that location. Conduits view this as high rollover risk.

Any one of these can stall or kill a CMBS execution. Multiple red flags push the deal into bridge or debt fund territory at significantly higher rates. PeerSense identifies these issues before you go to market.

How LTV Interacts with Lease Quality

LTV doesn't exist in a vacuum. The same property at 65% LTV can be gold or toxic depending on the lease structure behind it. Conduits adjust their risk tolerance based on the durability of cash flow. Longer, stronger leases support higher leverage.

GOLD STANDARD

65% LTV + 10 year leases

Over collateralized with zero rollover risk during the loan term. Conduits compete for this deal. Tightest spreads, fastest close, full non recourse.

STRONG

70% LTV + 7 year credit leases

Moderate leverage with investment grade cash flow. Most conduits will quote competitively. Slight spread premium over 65% LTV.

CHALLENGING

75% LTV + 2 year leases

High leverage with near term rollover risk. Most conduits pass. May need bridge financing first to re lease and stabilize before pursuing permanent CMBS.

NON STARTER

75% LTV + month to month tenants

No conduit will underwrite this. The cash flow has no contractual duration. Bridge or debt fund only, at 10 to 14% rates, until leases are in place.

Ground Leases: The Hidden CMBS Killer

Properties built on leased land introduce a layer of complexity that many borrowers underestimate and many conduits refuse to touch without specific protections in place. If your property sits on a ground lease, this section applies directly to your deal.

Term Must Extend Well Beyond Loan MaturityThe ground lease must have at least 10 to 15 years remaining after the CMBS loan matures. A 10 year CMBS loan on a ground lease with 12 years remaining is too tight. Most conduits require 20+ years remaining on the ground lease.

Subordination or Lender Protections RequiredThe ground lessor must either subordinate their interest to the CMBS lender or provide institutional grade lender protections: cure rights, new lease provisions, and notice requirements. Without these, the conduit has no recourse if the ground lease terminates.

Rent Resets and Escalations Affect UnderwritingGround lease rent that resets to fair market value every 5 to 10 years creates unpredictable operating expenses. Conduits must model worst case rent escalations, which can dramatically reduce the underwritten NOI and the loan amount you qualify for.

Documentation Must Be Institutional GradeThe original ground lease, all amendments, estoppels, and subordination agreements must be clean and complete. Missing or ambiguous ground lease documentation is one of the most common reasons CMBS conduits decline otherwise qualifying deals.

PeerSense handles ground lease complexity. We review ground lease terms, identify lender protection gaps, and structure the deal package to satisfy conduit requirements before going to market. If your property has a ground lease, bring it to us early. Fixing documentation issues after term sheet is far more expensive than addressing them upfront.

Published by PeerSense Capital Advisory · Written by Ed Freeman, Founder. Updated March 2026.

FORMULA & WORKED EXAMPLE

How a CMBS Conduit Sizes Your Loan: The DSCR Constrained Math

Every CMBS conduit runs the same two underwriting tests in parallel: the DSCR test (cash flow constraint) and the LTV test (collateral constraint). Your maximum loan is the lower of the two. Here is the exact formula, then a real $25M Class B suburban office deal walked through line by line.

THE TWO CONSTRAINT FORMULA

# Step 1: DSCR constrained debt service

Max Annual Debt Service = NOI ÷ DSCR_target

# Step 2: Convert debt service to loan amount via mortgage constant

Max Loan (DSCR test) = Max Annual Debt Service ÷ Mortgage Constant

where Mortgage Constant = (rate / 12) · 12 ÷ (1 − (1 + rate/12)⁻ⁿ) at amortization months n

# Step 3: LTV constrained loan

Max Loan (LTV test) = Property Value × Max LTV

# The conduit takes the lower of the two

Max CMBS Loan = MIN ( DSCR constrained loan , LTV constrained loan )

Worked Example: $25M Class B Suburban Office, 10 yr Conduit

Asset: 180,000 sf Class B suburban office, 92% leased, WALT 6.4 years. Sponsor: mid market real estate operator, 14 year track record, $32M net worth, $4.1M liquidity. Market: Sun Belt secondary, 5.25% in place cap. Quote: joint quote from two major money center conduits, 6.85% fixed, 30 yr amortization, 10 yr term + balloon, 5 year defeasance lockout, open prepay window months 117 to 120.

DSCR Test (cash flow constraint)

In place NOI	$2,360,000
Conduit underwritten NOI (haircut 4%)	$2,265,600
DSCR target (Class B office)	1.35x
Max annual debt service	$1,678,222
Mortgage constant (6.85% / 30 yr)	7.866%
Max loan (DSCR constrained)	$21,335,000

LTV Test (collateral constraint)

Appraised value	$36,500,000
Max LTV (Class B office, conduit)	65%
Max loan (LTV constrained)	$23,725,000

Final loan amount

$21,335,000

DSCR test binds. Sponsor tops up with $4.39M additional equity (or accepts the $21.33M and re underwrites at 58% LTV).

Closing economics: $21.335M CMBS conduit at 6.85%

Annual debt service

$1,678,222

Monthly P&I

$139,852

Year 10 balloon balance

~$18.62M

Defeasance cost (yr 5, Δ 100 bps)

~$1.05M

Cash on cash year 1

5.4%

Stabilized DSCR

1.35x

Debt yield

10.6%

Recourse

Bad boy only

Underwriting assumes appraised value $36.5M, conduit haircut 4% on NOI for management fees / replacement reserve / TI & LC, 30 year amortization, 10 year balloon. Defeasance cost assumes 5 year lockout has expired and prepay occurs in year 6 with Treasury yields 100 bps below loan coupon. Actual deal pricing varies with sponsor profile, tenant credit, lease structure, and market spreads at rate lock.

STRATEGIC ALTERNATIVES

CMBS Is the Goal, But the Right Path Depends on Your Timeline

CMBS delivers the lowest cost of capital for stabilized commercial real estate. But if your deal isn't CMBS ready today, PeerSense has a curated network of capital sources to get you there. The choice between conduit and bridge financing depends on your asset's current position, not where it's going.

Feature	CMBS / Conduit	Bridge Loan
Best For	Stabilized assets with predictable cash flow	Transitional, value add, or distressed assets
Rate Type	Fixed rate (5, 7, or 10 year)	Floating rate (SOFR + spread)
Rate Range	6.25% to 9% (conduit fixed)	8% to 15% (floating, all in)
Term	5 to 10 years with 25 to 30yr amortization	12 to 36 months, interest only
LTV	60 to 75% (most competitive at 60 to 65%)	65 to 80% (up to 85% with mezz)
Recourse	Non recourse (bad boy carve outs only)	Often recourse or partial recourse
Prepayment	Defeasance or yield maintenance (costly)	Flexible, often open after 6 to 12 months
Closing Speed	45 to 90 days	14 to 30 days
Borrower Requirements	Net worth ≥ 25% of loan, liquidity ≥ 5%, CRE track record	Varies widely, asset focused underwriting
Exit Strategy	Hold through maturity (defeasance to exit early)	Refinance into permanent debt or sell

When CMBS Is the Right Choice

CMBS conduit loans are designed for stabilized commercial properties generating predictable cash flow. If your property has strong occupancy (typically 85%+ for conduit execution), established tenants with remaining lease term, and you plan to hold for 5 to 10 years, conduit financing delivers the lowest cost of capital available for commercial real estate outside of agency multifamily.

The non recourse structure is particularly valuable for borrowers with significant personal wealth who want to limit their exposure to individual assets. Unlike bank loans where your entire balance sheet is at risk, CMBS limits your liability to the property itself (plus standard bad boy carve outs for fraud, misrepresentation, and voluntary bankruptcy).

The tradeoff is flexibility. Once a CMBS loan is securitized and sold to bondholders, the servicer has limited ability to modify terms. Prepayment is expensive (defeasance can cost 5 to 15% of the outstanding balance depending on the rate environment). Supplemental financing requires servicer approval. And any property level changes that affect the collateral (even tenant improvements) may need to go through special servicing.

When Bridge Financing Makes More Sense

Bridge loans are short term capital for properties that are not yet stabilized, or for borrowers who need speed that conduit execution cannot provide. If you are acquiring a property that needs renovation, repositioning, lease up, or management turnaround, a bridge loan provides the 12 to 36 months of runway needed to execute the business plan before transitioning into permanent financing.

Bridge rates are significantly higher than conduit rates, typically 8% to 15% all in depending on the deal, the borrower, and the lender. But bridge loans offer something CMBS cannot: flexibility. Most bridge loans are open for prepayment after a short lockout period (6 to 12 months), meaning you can refinance into cheaper permanent debt the moment the property stabilizes. The interest only payment structure also preserves cash flow during the value add period when the property may not yet generate enough NOI to support an amortizing payment.

Many of the strongest CMBS deals PeerSense places start as bridge loans. The bridge provides the capital to acquire, renovate, and stabilize. Once the property hits conduit underwriting thresholds (typically 85%+ occupancy, 1.25x+ DSCR, and a clean trailing twelve operating history) we transition the asset into permanent CMBS financing at a fraction of the bridge rate. This bridge to conduit pipeline is one of the most efficient capital structures in commercial real estate.

The Bridge to Conduit Pipeline

The most sophisticated borrowers think about bridge and conduit as two phases of the same transaction, not separate financing events. PeerSense structures bridge loans with the conduit takeout in mind from day one. This means:

Bridge terms that align with conduit requirements. We ensure the bridge structure, reserves, and hold period give you enough runway to reach stabilization without extension risk.
Conduit relationships engaged early. We begin conduit conversations during the bridge period so the permanent financing is pre marketed before the bridge matures.
Capital stack optimization across both phases, the bridge structure is designed to maximize the conduit proceeds at takeout, often allowing the borrower to pull equity out during the transition.

This approach is how experienced operators consistently achieve below market permanent financing: they use bridge capital to create value, then lock in long term CMBS rates on a now stabilized asset that underwrites significantly better than it did at acquisition.

Related CMBS Strategies

Every CMBS deal has a different starting point. Below are the specific strategies we use depending on where your asset is in its lifecycle.

CMBS Refinance ($10 million and up)

Loan maturing in 12 to 24 months? The small balance conduit refi playbook, sizing tests, refi gap options, interactive sizer.

CMBS Readiness Checklist

Verify your deal qualifies before going to market. The Gold Standard for stabilized assets.

Hotel CMBS Refinance

Stabilized post PIP hotel at 65% LTV? Non recourse fixed rate financing for hospitality.

Bridge to Permanent Strategy

Two stage capital: bridge to stabilize, then exit into permanent CMBS at the new value.

SBA 7(a) Exit Refinance

Convert variable rate SBA debt into fixed rate conventional or CMBS permanent financing.

→ CMBS Deal Sizer

Calculate your max loan, indicative rate, monthly payment, and DSCR in 30 seconds. No signup.

Not CMBS Ready? Strategic Alternatives for 65% LTV Borrowers

SBA 504

If you occupy 51%+ of the building, an SBA 504 offers a 25 year fixed rate that CMBS cannot match. Ideal for owner users in medical, industrial, or retail who want maximum term certainty.

Learn about SBA 504

Bridge to CMBS

At 65% LTV but with upcoming vacancy or renovation? Bridge first, CMBS in 12 months. Stabilize with flexible short term capital, then lock in permanent non recourse rates.

Explore bridge options

Conventional Bank

Planning to sell in 3 years? A conventional bank loan at 65% LTV avoids defeasance penalties entirely. Cheaper to exit than CMBS when your hold period is short.

Discuss your timeline

CMBS Readiness Checklist Structure Your Deal

Program Comparison

CMBS vs. Agency vs. Bank vs. Institutional Balance Sheet: Which Permanent Lender Fits Your Deal

Four primary sources of stabilized commercial real estate debt. CMBS conduits are securitized and non recourse with defeasance. Agency lenders (Fannie, Freddie, HUD) finance multifamily only at the best rates. Banks offer relationship driven recourse debt with faster closes. Institutional balance sheet lenders compete with CMBS on long duration fixed rate debt but with stricter underwriting and no pooled loan mechanics. Pick based on asset type, non recourse preference, flexibility, and long term strategy.

	CMBS / Conduit Securitized · non recourse	Agency (Fannie / Freddie / HUD) Multifamily only	Bank / Portfolio Relationship · recourse	Institutional Balance Sheet Long duration · trophy assets
Eligible Property Types	Multifamily · office · retail · industrial · hospitality · self storage · mixed use · mobile home parks · data centers	Multifamily (5+ units) only: conventional, affordable, senior housing, student housing	All CRE types: broadest flexibility, including owner user and specialty	Multifamily · office (Class A) · industrial · retail (anchored) · hospitality (flagged only): generally trophy / institutional quality only
Rate Range (May 2026)	6.25% to 9.00% fixed	5.25% to 6.75% (conventional) · 5.00% to 6.25% (HUD 223f)	6.00% to 8.50% (varies by asset + relationship)	5.75% to 7.50% fixed
Recourse	Non recourse (bad boy carve outs)	Non recourse	Typically recourse (carve outs negotiable)	Non recourse
Max LTV	60% to 75% (property type driven)	Up to 80% (conventional) · 85% (HUD 223f)	65% to 75%	60% to 70% (stricter)
Term	5 / 7 / 10 years fixed	5 to 18 years (Freddie) · 7 to 30 years (Fannie) · up to 35 years (HUD 223f)	3 to 10 years	7 to 25 years (longest available)
Amortization	25 to 30 years	Up to 30 years (conventional) · up to 35 years (HUD)	20 to 25 years typical	20 to 30 years
Minimum Loan Size	$10 million public floor	$10 million and up	$10 million and up	$10M to $25M (institutional floors)
Assumability	Fully assumable, major value driver in high rate markets	Assumable with agency approval	Rarely assumable, case by case	Assumable with lender approval
Prepayment	Defeasance or yield maintenance, no soft prepay	Yield maintenance (Fannie) · Step down (Freddie SBL) · Lockout + yield maintenance (HUD)	Flexible: 1% to 3% prepay or sliding scale	Yield maintenance standard
Interest Only Period	0 to 10 years I/O available at lower leverage	Up to 10 years I/O (partial or full term)	Limited: 1 to 3 years typical	Up to 5 years I/O on strong deals
DSCR Minimum	1.25x to 1.40x (property type driven)	1.25x (Fannie) · 1.20x small balance · 1.176x (HUD 223f)	1.25x to 1.35x	1.30x to 1.50x (stricter)
Close Time	45 to 90 days	45 to 75 days	30 to 60 days (fastest if relationship)	60 to 120 days (slowest, most diligence)
Servicing	Master / special servicer, transferred from originator at securitization	Agency servicer or delegated lender	Relationship bank, direct contact retained	Direct lender relationship retained
Best Fit	Stabilized commercial real estate $10 million and up · sponsors who want non recourse and can live with defeasance · long term hold or planned sale	Multifamily sponsors: lowest rate available for 5+ unit conventional, affordable, and specialty multifamily	Smaller deals · owner user · sponsors with existing banking relationship · shorter hold · willingness to sign personal guarantee	Trophy assets · $25M+ deals · long duration hold · sponsors who want the longest fixed rate term available

Eligible Property Types

CMBS / Conduit: Multifamily · office · retail · industrial · hospitality · self storage · mixed use · mobile home parks · data centers

CMBS / ConduitSecuritized · non recourse: Multifamily · office · retail · industrial · hospitality · self storage · mixed use · mobile home parks · data centers
Agency (Fannie / Freddie / HUD)Multifamily only: Multifamily (5+ units) only: conventional, affordable, senior housing, student housing
Bank / PortfolioRelationship · recourse: All CRE types: broadest flexibility, including owner user and specialty
Institutional Balance SheetLong duration · trophy assets: Multifamily · office (Class A) · industrial · retail (anchored) · hospitality (flagged only): generally trophy / institutional quality only

Rate Range (May 2026)

CMBS / Conduit: 6.25% to 9.00% fixed

CMBS / ConduitSecuritized · non recourse: 6.25% to 9.00% fixed
Agency (Fannie / Freddie / HUD)Multifamily only: 5.25% to 6.75% (conventional) · 5.00% to 6.25% (HUD 223f)
Bank / PortfolioRelationship · recourse: 6.00% to 8.50% (varies by asset + relationship)
Institutional Balance SheetLong duration · trophy assets: 5.75% to 7.50% fixed

Recourse

CMBS / Conduit: Non recourse (bad boy carve outs)

CMBS / ConduitSecuritized · non recourse: Non recourse (bad boy carve outs)
Agency (Fannie / Freddie / HUD)Multifamily only: Non recourse
Bank / PortfolioRelationship · recourse: Typically recourse (carve outs negotiable)
Institutional Balance SheetLong duration · trophy assets: Non recourse

Max LTV

CMBS / Conduit: 60% to 75% (property type driven)

CMBS / ConduitSecuritized · non recourse: 60% to 75% (property type driven)
Agency (Fannie / Freddie / HUD)Multifamily only: Up to 80% (conventional) · 85% (HUD 223f)
Bank / PortfolioRelationship · recourse: 65% to 75%
Institutional Balance SheetLong duration · trophy assets: 60% to 70% (stricter)

Term

CMBS / Conduit: 5 / 7 / 10 years fixed

CMBS / ConduitSecuritized · non recourse: 5 / 7 / 10 years fixed
Agency (Fannie / Freddie / HUD)Multifamily only: 5 to 18 years (Freddie) · 7 to 30 years (Fannie) · up to 35 years (HUD 223f)
Bank / PortfolioRelationship · recourse: 3 to 10 years
Institutional Balance SheetLong duration · trophy assets: 7 to 25 years (longest available)

Amortization

CMBS / Conduit: 25 to 30 years

CMBS / ConduitSecuritized · non recourse: 25 to 30 years
Agency (Fannie / Freddie / HUD)Multifamily only: Up to 30 years (conventional) · up to 35 years (HUD)
Bank / PortfolioRelationship · recourse: 20 to 25 years typical
Institutional Balance SheetLong duration · trophy assets: 20 to 30 years

Minimum Loan Size

CMBS / Conduit: $10 million public floor

CMBS / ConduitSecuritized · non recourse: $10 million public floor
Agency (Fannie / Freddie / HUD)Multifamily only: $10 million and up
Bank / PortfolioRelationship · recourse: $10 million and up
Institutional Balance SheetLong duration · trophy assets: $10M to $25M (institutional floors)

Assumability

CMBS / Conduit: Fully assumable, major value driver in high rate markets

CMBS / ConduitSecuritized · non recourse: Fully assumable, major value driver in high rate markets
Agency (Fannie / Freddie / HUD)Multifamily only: Assumable with agency approval
Bank / PortfolioRelationship · recourse: Rarely assumable, case by case
Institutional Balance SheetLong duration · trophy assets: Assumable with lender approval

Prepayment

CMBS / Conduit: Defeasance or yield maintenance, no soft prepay

CMBS / ConduitSecuritized · non recourse: Defeasance or yield maintenance, no soft prepay
Agency (Fannie / Freddie / HUD)Multifamily only: Yield maintenance (Fannie) · Step down (Freddie SBL) · Lockout + yield maintenance (HUD)
Bank / PortfolioRelationship · recourse: Flexible: 1% to 3% prepay or sliding scale
Institutional Balance SheetLong duration · trophy assets: Yield maintenance standard

Interest Only Period

CMBS / Conduit: 0 to 10 years I/O available at lower leverage

CMBS / ConduitSecuritized · non recourse: 0 to 10 years I/O available at lower leverage
Agency (Fannie / Freddie / HUD)Multifamily only: Up to 10 years I/O (partial or full term)
Bank / PortfolioRelationship · recourse: Limited: 1 to 3 years typical
Institutional Balance SheetLong duration · trophy assets: Up to 5 years I/O on strong deals

DSCR Minimum

CMBS / Conduit: 1.25x to 1.40x (property type driven)

CMBS / ConduitSecuritized · non recourse: 1.25x to 1.40x (property type driven)
Agency (Fannie / Freddie / HUD)Multifamily only: 1.25x (Fannie) · 1.20x small balance · 1.176x (HUD 223f)
Bank / PortfolioRelationship · recourse: 1.25x to 1.35x
Institutional Balance SheetLong duration · trophy assets: 1.30x to 1.50x (stricter)

Close Time

CMBS / Conduit: 45 to 90 days

CMBS / ConduitSecuritized · non recourse: 45 to 90 days
Agency (Fannie / Freddie / HUD)Multifamily only: 45 to 75 days
Bank / PortfolioRelationship · recourse: 30 to 60 days (fastest if relationship)
Institutional Balance SheetLong duration · trophy assets: 60 to 120 days (slowest, most diligence)

Servicing

CMBS / Conduit: Master / special servicer, transferred from originator at securitization

CMBS / ConduitSecuritized · non recourse: Master / special servicer, transferred from originator at securitization
Agency (Fannie / Freddie / HUD)Multifamily only: Agency servicer or delegated lender
Bank / PortfolioRelationship · recourse: Relationship bank, direct contact retained
Institutional Balance SheetLong duration · trophy assets: Direct lender relationship retained

Best Fit

CMBS / Conduit: Stabilized commercial real estate $10 million and up · sponsors who want non recourse and can live with defeasance · long term hold or planned sale

CMBS / ConduitSecuritized · non recourse: Stabilized commercial real estate $10 million and up · sponsors who want non recourse and can live with defeasance · long term hold or planned sale
Agency (Fannie / Freddie / HUD)Multifamily only: Multifamily sponsors: lowest rate available for 5+ unit conventional, affordable, and specialty multifamily
Bank / PortfolioRelationship · recourse: Smaller deals · owner user · sponsors with existing banking relationship · shorter hold · willingness to sign personal guarantee
Institutional Balance SheetLong duration · trophy assets: Trophy assets · $25M+ deals · long duration hold · sponsors who want the longest fixed rate term available

Program criteria current as of May 2026.

Rate ranges reflect May 2026 market indications. Agency rates assume multifamily property type. CMBS non-recourse carries bad-boy carve-out guarantees. Actual pricing depends on property type, LTV, DSCR, sponsor track record, and market spreads at rate lock. For a specific deal indication contact PeerSense.

Non Recourse Protection: Why Experienced Sponsors Choose CMBS

At 65% LTV, CMBS conduit loans are non recourse. Your personal assets are protected. This is the primary reason well capitalized sponsors transition from recourse bank debt to CMBS.

Recourse Bank Debt

Personal guarantee on the full loan balance
Your homes, accounts, and portfolio are exposed
Bank can pursue deficiency judgment if property value drops
Covenant violations can trigger cross defaults across your portfolio

Non Recourse CMBS (65% LTV)

Property is the sole collateral, personal assets protected
Liability limited to standard "bad boy" carve outs only
Carve outs cover fraud, misapplication of rents, voluntary bankruptcy, insurance/tax failures, not market losses
Fully assumable: transfer to buyer without refinancing

The transition from recourse to non recourse is often the most valuable structural improvement a sponsor can make. At 65% LTV with 1.25x+ DSCR, CMBS conduits offer the most protective non recourse terms in commercial real estate.

2026 CMBS Maturity Wall: $100B+ Coming Due

Over $100 billion in CMBS loans are maturing in 2026, the largest maturity wave since the financial crisis. Borrowers with strong assets (65% LTV, 1.25x+ DSCR) are getting the most competitive pricing in years as conduit lenders compete for refinance volume. Start your refinance process at least 12 months before maturity.

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CMBS Loan Pros and Cons

Pros

Non recourse, personal assets protected
Fixed rate for 5 to 10 years
Fully assumable at sale
Highest leverage for stabilized assets (up to 75% LTV)
No personal financial covenants

Cons

Defeasance or yield maintenance for early exit
Managed by servicer, not original lender
Limited flexibility for property modifications
This desk does not publish a close calendar.
Public floor $10 million and up

Calculate Your DSCR

Use our free calculator to see if your property's cash flow supports CMBS financing.

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RATE INTELLIGENCE

Why CMBS Rates Range from 6% to 15% on the Same Deal

The single most common question borrowers ask is "what rate can I get?" The honest answer: it depends on who you are, how much you're putting down, and which lender you're talking to. PeerSense regularly sees rate quotes vary by 5 to 9 percentage points on the exact same property.

BEST CASE

6 to 7%

Conduit Fixed Rate

35 to 40% equity (60 to 65% LTV)
Experienced sponsor with 10+ CRE deals
Stabilized trophy asset, 90%+ occupancy
Strong DSCR (1.35x+) with long term leases
Net worth 25%+ of loan amount

This is the institutional tier, experienced operators with significant equity and proven track records on comparable assets.

TYPICAL CASE

7 to 10%

Conduit or Balance Sheet

25 to 35% equity (65 to 75% LTV)
Some CRE experience but limited track record
Stabilized property, 80 to 90% occupancy
DSCR 1.20 to 1.35x, shorter remaining lease term
Adequate but not exceptional balance sheet

Where most deals land, borrowers with solid fundamentals but one or two factors that push rates above the floor.

BRIDGE / HIGH LEVERAGE

10 to 15%

Bridge or Debt Fund

Less than 25% equity (75%+ LTV)
First time CRE investor or new to asset class
Transitional or value add property
Below market DSCR, vacancy risk, short leases
Thin balance sheet or limited liquidity

Not necessarily a bad deal. Bridge capital serves a purpose. But understand why the rate is higher and plan the exit into permanent financing.

The Two Factors That Matter Most: Equity and Experience

After working across hundreds of commercial real estate financing scenarios, the pattern is clear: down payment and borrower experience are the two largest drivers of your interest rate. Everything else (property type, market, occupancy, lease structure) matters, but these two factors determine which tier of lending you qualify for.

A borrower contributing 35 to 40% equity with a track record of owning and operating similar commercial properties will consistently receive rate quotes 3 to 5% lower than a borrower putting 20 to 25% down with no prior CRE experience. That difference on a $10 million loan is $300,000 to $500,000 per year in interest expense. Over a 10 year hold period, the experienced, well capitalized borrower saves $3 million to $5 million, on the same property.

This is why PeerSense structures deals before submitting to lenders. The right capital stack (the right combination of equity, senior debt, and potentially mezzanine or preferred equity) can move your effective rate by several percentage points. We have seen the same $15 million hotel deal quoted at 6.5% by one conduit and 14% by a bridge lender. Both quotes were accurate for the borrower profile they were underwriting to. The difference was how the deal was structured and presented.

How Down Payment Affects Your CMBS Rate

In CMBS lending, your equity contribution is the single strongest signal of deal quality. Conduit lenders pool loans into securities and sell them to bond investors. Those investors price risk, and the less equity in a deal, the higher the risk of loss to the bond pool.

Equity to Rate Relationship in CMBS

35 to 40% down

6.25 to 7.25%

Best conduit tier

30 to 35% down

7.00 to 8.00%

Competitive conduit

25 to 30% down

7.50 to 9.00%

Conduit or bank

20 to 25% down

9.00 to 12.00%

Bridge / debt fund

<20% down

12.00 to 15.00%+

Hard money / mezz stack

Indicative as of October 1, 2026. Not a quote. Lenders set final pricing at underwriting.

Notice the inflection point at 30%. Below 30% equity, you start leaving conduit territory entirely. Most CMBS conduits want 25% minimum, but the borrowers who receive the best pricing are consistently at 35% or higher. The difference between 25% down and 35% down on a $10M acquisition is $1M more equity, but it can save you $200,000+ per year in interest. Over a 10 year hold, that $1M of additional equity saves $2M+ in financing costs. The math is unambiguous.

How Borrower Experience Affects Pricing

Experience is the second variable that moves rates dramatically. CMBS conduits underwrite the borrower as well as the property. A sponsor who has owned and operated similar commercial assets (same property type, same approximate size, in the same or comparable markets) receives materially better terms than a first time buyer.

What conduits mean by "experience" is specific:

Same property type: Owning an apartment building does not qualify you as experienced for a hotel or retail acquisition. Conduits want asset class specific experience.
Comparable scale: Successfully operating a 20 unit strip center is not equivalent experience for a 200,000 SF regional mall. The underwriting complexity and operational demands are fundamentally different.
Track record of performance: Conduits will review your operating history on prior deals. Did you hit your proforma? Did you maintain or improve occupancy? Did you execute capital improvements on schedule?
Balance sheet strength: Net worth of at least 25% of the requested loan amount and post closing liquidity of at least 5%. Conduits want to know you can weather a vacancy or capital expenditure without defaulting.

For borrowers who lack experience but have strong equity positions, PeerSense often recommends bringing on a co sponsor or key principal with the required track record. This can move a deal from bridge pricing (10 to 14%) into conduit pricing (7 to 8%). The co sponsor addition alone can save hundreds of thousands annually on a $10M+ deal.

Why the Same Deal Gets Quoted at 6% and 15%

PeerSense submits every qualifying deal to multiple capital sources simultaneously: conduit lenders, balance sheet banks, institutional portfolio lenders, debt funds, and bridge lenders. The spread we see on identical deals is routinely 5 to 9 percentage points. This is not because some lenders are overcharging. It is because different capital sources serve different risk profiles.

A CMBS conduit quoting 6.5% is pricing for a stabilized, low risk, long term hold by an experienced sponsor with significant equity. A bridge lender quoting 14% on the same property is pricing for a transitional execution with higher leverage, shorter term, and more borrower flexibility. Both are accurate prices for what they are offering.

The advisory value is in determining which capital source is the right fit for your specific situation, and structuring the deal to access the most competitive tier available. A borrower who does not know the market may accept a 12% bridge quote without realizing the same deal qualifies for 7.5% conduit execution with a modest restructuring of the equity stack.

This is exactly what PeerSense does. We source capital through a curated network of commercial lenders and capital sources. We structure. Our compensation is a referral fee established upfront in a written agreement, paid at closing. The initial consultation and deal assessment are complimentary.

Talk to PeerSense

Referral fee at closing. Initial consultation is complimentary.

CMBS Deal Scenarios: What the Numbers Look Like

Three real world scenarios showing how CMBS financing structures at different property types and leverage levels.

Scenario 1

Anchored Retail Center

Property Value$15M

LTV65%

Loan Amount$9.75M

Fixed Rate6.90%

Annual Debt Service$672,750

Monthly Payment$56,063

NOI$950,000

DSCR1.41x

vs. bridge at 11%: saves $400K/year

Scenario 2

Flagged Hotel (150 Keys)

Property Value$22M

LTV60%

Loan Amount$13.2M

Fixed Rate7.25%

Annual Debt Service$957,000

Monthly Payment$79,750

NOI$1,400,000

DSCR1.46x

vs. bridge at 12%: saves $627K/year

Scenario 3

Industrial Portfolio (3 Buildings)

Property Value$35M

LTV70%

Loan Amount$24.5M

Fixed Rate6.50%

Annual Debt Service$1,592,500

Monthly Payment$132,708

NOI$2,200,000

DSCR1.38x

vs. bridge at 10%: saves $858K/year

Scenarios are illustrative and assume 25 year amortization, interest only not shown. Actual terms vary by deal. Scan your deal for a personalized assessment.

SECURITIZATION STRUCTURE

How a CMBS Loan Becomes a Bond: REMIC, Tranches, Servicers, B Piece Buyer

Once your loan funds, it leaves the originator's balance sheet within 30 to 120 days. It's pooled with 30 to 100 other commercial mortgages (a conduit deal) or sold solo (a SASB, Single Asset Single Borrower deal), wrapped in a REMIC trust, sliced into rated bond tranches by Moody's / S&P / Fitch / KBRA / DBRS Morningstar, and sold to institutional investors. Understanding this structure explains why CMBS loans have rigid prepayment penalties, why your point of contact changes after closing, and why deal modifications are slow.

The CMBS Bond Waterfall (Senior → Junior)

AAA Super Senior

~30% of pool

Indicative spread

T+78 bps

Typical buyers

Insurance companies, pensions, money managers, central banks

AAA Junior

~30% of pool

Indicative spread

T+95 bps

Typical buyers

Insurance companies, pension funds, and the large asset managers

~10% of pool

Indicative spread

T+135 bps

Typical buyers

Asset managers, smaller insurers

~7% of pool

Indicative spread

T+170 bps

Typical buyers

Asset managers, hedge funds

BBB / BBB-

~7% of pool

Indicative spread

T+325 bps

Typical buyers

Mezzanine investors, CRE CLO managers, hedge funds

~4% of pool

Indicative spread

T+575 bps

Typical buyers

Specialized credit funds, CMBS B piece adjacent

B Piece (B / NR)

~12% of pool

Indicative spread

High yield equity like

Typical buyers

A concentrated group of specialist B piece investors

Indicative tranche sizes and spreads as of May 2026 across recent BMARK / BANK / BBCMS conduit prints. Actual tranching varies by deal. Spreads quoted over swaps or 10 yr UST. The B piece buyer absorbs first loss risk and typically has rights over special servicer selection and loan modifications.

Master Servicer

Day to day cash management. Collects monthly P&I, manages reserve accounts, processes routine consents (lease approvals, easements, immaterial transfers).

A handful of large bank servicing platforms handle nearly all master servicing.

Special Servicer

Activates only on default, monetary delinquency, or material modification request. Has authority to extend, modify, foreclose, or sell the loan. Often controlled by the B piece buyer.

A concentrated group of special servicing shops handles nearly all workouts.

Trustee & Rating Agencies

The trustee (a large institutional trust bank) holds collateral on behalf of bondholders. Rating agencies surveil credit and downgrade tranches when delinquencies climb.

Rating agencies: Moody’s, S&P Global, Fitch Ratings, KBRA, DBRS Morningstar.

Why this matters to borrowers: Once your loan is securitized, your originator no longer owns it. Any modification (lease subordination, partial release, leverage adjustment, assumption to a buyer) routes through the master or special servicer, governed by the Pooling and Servicing Agreement (PSA), and often requires B piece buyer consent. Build flexibility into the loan documents before closing, not after.

PROPERTY TYPES

Eligible Property Types

CMBS conduits lend across all major commercial real estate asset classes. Conduit appetite varies by quarter. PeerSense tracks which conduits are actively pricing each property type.

Office

Retail

Multifamily

Industrial

Self Storage

Hospitality

Data Center

Mixed Use

Medical Office

Student Housing

Manufactured Housing

WHY PEERSENSE

Why Borrowers Work With PeerSense on CMBS

CMBS is not a single lender. It is a market. Managing it requires knowing who is active, what they are pricing, and how to structure your deal for the best execution.

Access to Multiple Conduits

PeerSense maintains active relationships with CMBS conduits across the market. Instead of approaching one lender, your deal is evaluated against the full range of available capital.

Real Time Market Intelligence

Conduit appetite shifts quarterly based on bond market conditions, portfolio concentration, and investor demand. We track which conduits are actively lending on which property types, and at what spreads.

Structuring Expertise

CMBS execution requires precise structuring around defeasance, reserves, lockbox provisions, and SPE requirements. PeerSense ensures your deal is structured to optimize terms before it reaches a conduit.

Bridge to Conduit Coordination

For transitional assets, we structure bridge financing with the permanent conduit takeout in mind from inception. This eliminates refinance risk and ensures a clean handoff.

Institutional Grade Process

Our deal packages meet conduit underwriting standards from the first submission. Complete financials, property level analysis, and borrower profiles, presented the way conduit desks expect to see them.

Fee at Closing

PeerSense's compensation is established upfront and paid at closing. The initial consultation is complimentary.

THE PROCESS

How It Works

Three steps from initial conversation to term sheet. PeerSense handles the conduit outreach, structuring, and negotiation.

Talk to PeerSense

Share property details, financials, borrower profile, and timeline. A brief conversation is typically enough for us to assess conduit fit.

Place the file

The desk places the file with conduits that are pricing the property type and size. PeerSense sources capital. It is not the lender.

Term Sheet in Days

Receive competitive term sheets from conduit lenders. We negotiate on your behalf to optimize spread, structure, and flexibility, then guide you through closing.

Talk to PeerSense

Does this file sit in the live box?

Originators, factoring, CMBS, bridge, data center. Public floors first.

Check the box

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Occupancy, cash in, and what is on the books. No spam.

By submitting you agree to receive emails, calls, and texts about rates from PeerSense Capital Advisory. We do not sell or share your data.

When CMBS Is the Wrong Product

CMBS is not a value add product. If your property has meaningful vacancy, a lease up story, pending capital improvements, or a short intended hold before repositioning, a bridge loan or bank loan is the correct tool, not CMBS. Trying to force a stabilization story to access conduit pricing is one of the most common sponsor mistakes, and CMBS servicers are rigidly structured by design.

Don't put a CMBS loan on:

Properties with material vacancy (sub 85% occupied) or active lease up
Properties with pending capital improvements or PIPs you'll fund post close
Short hold strategies (under 5 years): defeasance + yield maintenance economics destroy short hold returns
Deals that need ongoing lender cooperation post closing (covenant waivers, modifications, secondary financing)

Why this matters: Once your loan is securitized, secondary financing is prohibited post closing, and modifications require approval from a special servicer with no commercial obligation to cooperate on your timeline. A borrower who needs operational flexibility during an active business plan will find the CMBS structure an obstacle, not an asset. PeerSense pre evaluates whether your property and borrower profile genuinely fit a conduit structure before any lender conversation begins. Not every stabilized asset belongs in CMBS, and not every borrower should want it there.

Frequently Asked Questions

Public CMBS floor at PeerSense is $10 million and up. The economics of securitization favor larger loans. $10 million plus typically gets the most competitive pricing. Files below $10 million are a pass on this desk.

Capital Markets Advisory · Representative Deals

Representative CMBS Closes

Anonymized case studies of CMBS conduit refinances PeerSense has structured: Class B office, retail, hospitality, and multifamily.

Manhattan commercial towers at golden hour

$25,000,000

Class B suburban office, ~165K SF, secondary Midwest MSA

CMBS

$25M CMBS Conduit Refinance, Class B Suburban Office

Closed at 6.85% / 70% LTV in 58 days; ~$1.0M/yr interest savings vs prior bridge (~10.85% prior, 400 bps spread tightening on $25M).

Rate: 6.85%
LTV: 70%
DSCR: 1.30x
Term: 10 yr

Sponsor was burning carry on a maturing floating rate bridge originated during a value add hold. Underwritten NOI of $2.27M cleared the lender debt yield floor, and PeerSense ran the three constraint conduit test in parallel, LTV bound at $17.5M, debt yield bound at $26.7M, DSCR bound at $20.1M, confirming DSCR was the binding constraint. We pre cleared three institutional CMBS conduits and selected the desk with the tightest spread on Class B suburban product. The conduit funded at $25M flat with a 3 yr IO window that defers principal long enough for the sponsor to recapture leasing reserves before amortization kicks in.

Structure

10 yr fixed CMBS conduit, non recourse, 30 yr amortization, 3 yr interest only, defeasance prepayment

Closed in 58 daysMidwest secondary MSA2025 to 2026

Similar to your deal?Talk to PeerSense

Disclaimer: Case studies are anonymized representations of deal types PeerSense routinely structures. All borrower names, specific property addresses, and identifying details have been altered or omitted to protect client confidentiality. Loan amounts, rates, LTVs, and structural details reflect typical institutional terms PeerSense has placed; individual deals vary with credit, sponsor, and market conditions.

Client Reviews

Senior Debt & Institutional Capital Clients

Verified via LinkedInInstitutional Capital

“Ed is a problem solver and always looking to help individuals and companies achieve their goals. He has the work ethic and communication skills to get in front of decision makers of all shapes and sizes. Ed is a consummate professional and I have enjoyed working with him and getting to know him over the past few years.”

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Verified via LinkedInSenior Debt Placement

“Ed was of great help. We were working with a tight deadline and he secured senior debt quickly, gathering a half dozen term sheets within a week's time. He was pleasant, on top of things, and highly professional. We will certainly work with Ed again, and can strongly recommend his people-connecting skills to anyone interested in high-quality contacts.”

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Verified via LinkedInStrategic Capital Advisory

“I've had the pleasure of working with Ed Freeman over the years, and he has been a constant source of encouragement, insight, and creative problem-solving. From providing me with strategic business solutions to coaching me through challenges, Ed has always been generous with his time and expertise. His ability to identify opportunities, offer actionable advice, and genuinely care about others' success sets him apart as a true leader and strategist.”

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Verified via LinkedInCapital Markets

“Ed is a wizard at finding niche, lucrative opportunities and is insanely well connected with investment firms. Certainly a 'go-to' person for thoughts and inspiration. Always willing to be a resource and generous with his time helping others.”

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Verified Reviews

Real Reviews from Borrowers & Lenders

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Sources & References

CMBS & Conduit Lending Sources

Trepp: CMBS Market Data & Delinquency Tracker: Industry standard CMBS issuance, spread, delinquency, and maturity wall data.
S&P Global Ratings: CMBS Surveillance: Conduit and SASB CMBS rating actions, sector outlook, and methodology updates.
KBRA: Structured Finance & CMBS: Independent rating agency CMBS surveillance and pre sale reports.
Mortgage Bankers Association: Commercial Real Estate Finance: Quarterly commercial mortgage origination volumes, debt outstanding, and maturity composition.
Federal Reserve: Commercial Real Estate Debt: Quarterly Z.1 Financial Accounts of the United States, commercial mortgage debt aggregates.
Fitch Ratings: CMBS Sector: Independent CMBS rating agency surveillance reports and 2025 to 2027 maturity outlook.

External links are provided for informational and verification purposes. PeerSense is not affiliated with and does not endorse any third party site. Information was current at the time of publication.

Get Your CMBS Rate Estimate

CMBS / Conduit Refi: The desk will reach out. No obligation.

How big is your deal?

Where are you in the deal?

Equity or down payment ready

Credit score

Timeline to close

What best describes your company

Liquid funds available outside this deal

Where is the property or business

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Referral fee realized at closing · Or call (317) 452 6990

Deals We Structure

Originators, factoring, CMBS, and bridge. Sizes and structures only. No counterparties named. PeerSense sources capital through a curated network of commercial lenders and capital sources.

CMBS / Hotel Refi

$10 million and up flagged hotel, CMBS refi

Cash in about 35 percent. Named takeout.

Bridge Loan

$10 million and up value add multifamily bridge

Named takeout first. Close follows the book.

Talk to PeerSense

The network is the trust signal Fee realized at closing

Related Financing Options

Hotel CMBS Refinance

Refinance your hotel into a fixed rate CMBS conduit loan at 65% LTV.

CMBS Readiness Checklist

See if your property qualifies for conduit financing before you apply.

Bridge to CMBS Strategy

Use short term bridge capital to stabilize, then exit into permanent CMBS.

Free Deal Scan

Get a complimentary assessment of your deal's financing options.

How PeerSense Works

Well Capitalized CMBS Deals

65% LTV or lower, strong DSCR, experienced sponsor, $10 million and up

Fee at closing only
Direct access to a senior PeerSense advisor
Pre underwritten before lender submission
Matched to active conduit or lender

Getting to CMBS Ready

Not at 65% LTV yet? We help you get there: bridge to CMBS, stabilization, capital stack structuring.

Engagement fee applies (credited at closing)
Full deal packaging and structuring
Bridge to permanent pipeline planning
Multiple lender submissions

All fees are established upfront in a written agreement. Well capitalized deals at 65% LTV or lower receive priority service.

Check If Your Property Qualifies for CMBS

65%+ LTV. Non recourse. Fixed rate. PeerSense connects you directly with the conduits pricing your property type. No mass submissions, no runaround. One call to see if CMBS fits your deal.

Get a CMBS Term Sheet Call (317) 452 6990

Curated capital network · Referral fee at closing only

PeerSense CMBS advisory is headquartered in Westfield, Indiana and structures conduit loans on commercial properties in all 50 states. We work with every major CMBS conduit and have closed transactions across the Midwest, Southeast, Texas, California, and the Northeast. Whether your property is in Indianapolis, Chicago, Dallas, Atlanta, or New York, our capital relationships deliver the same competitive pricing and execution speed.

Disclaimer: PeerSense sources capital through a curated network of commercial lenders and capital sources. All rates, terms, market data, and estimates shown on this page are approximate and subject to change based on market conditions, borrower qualifications, property specifics, and lender discretion. Nothing on this website constitutes financial, legal, or investment advice. Individual results vary. All information should be independently verified. Past performance and market data do not guarantee future results. Consult with qualified legal and financial professionals before making any financing decisions.

Deal Archetypes

Representative Deal Types We Structure

Archetypes our institutional capital advisory desk underwrites, drawn from published market ranges across CMBS, bridge, SBA, mezzanine, and private credit.

$10 million and up

CMBS Refinance

Structure10 year fixed CMBS conduit

Leverage60 to 65% LTV

Term10 years, non recourse

Indicative rate6.75 to 8.25%

ProfileStabilized multifamily, industrial, NNN · Q1 2026

Cash in about 35 percent or better so LTV sits at 65 or under. Files below $10 million sit.

$10 million and up

NNN 1031 Exchange

StructureCMBS conduit, single tenant

Leverage65% LTV or under

Term10 years, non recourse

Indicative rate6.25 to 6.95%

ProfileInvestment grade tenant, corporate guaranteed lease · Q4 2025 / Q1 2026

Public floor is $10 million and up. Cash in about 35 percent.

$10 million and up

Hotel CMBS Refinance

Structure10 year fixed CMBS conduit

Leverage60 to 65% LTV

Term10 years, non recourse

Indicative rate6.75 to 8.25%

ProfileLimited service flagged hospitality · Q1 2026

Hotel is search only. Public files from $10 million. Cash in about 35 percent.

Have a deal like these?See how we'd structure yours

Indicative of deal types our institutional capital advisory desk structures. Not a representation of completed transactions. Specific deal data available under NDA on request.

Go Deeper on CMBS

Lender shortlists, defeasance modeling, capital markets intel, and specialty CMBS scenarios.

Lender Shortlists

Editorial Guides

Specialty Scenarios

See Related Rates by Program

PeerSense covers the full commercial capital stack. These are indicative levels direct capital sources have been pricing across these programs as of October 1, 2026.

Originator warehouse

$100M a month

Focus $100 million a month. Will look at $10 million a month. $10 million is not the focus.

See current rates

Invoice Factoring

0.5 to 3.5% / 30d

B2B invoices from $20 million a month. Advance 80 to 95 percent of face.

See current rates

Bridge Loans

9.00 to 14.00%

$10 million and up. Cash in about 35 percent. Name the takeout first.

See current rates

Data Center

CRS to 89%

$1 billion to $30 billion plus. Signed or guaranteed hyperscaler lease.

See current rates

Contracted revenue sale

Up to 89%

15 year lease signed or guaranteed by a hyperscaler. Size follows the lease.

See current rates

Hotel Financing

Hotel financing is search only for $10 million and up, with cash in about 35 percent.

See current rates

Private Credit

7.80 to 18.00%

Non bank flexibility for commercial real estate at $10 million and up.

See current rates

SBA 7(a) & 504

Search path. Not a growth lane on this desk.

See current rates

DSCR Investor

Search path. Portfolio and multi property DSCR of $10 million and up.

See current rates

Page Review

Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense

PeerSense is a capital advisory firm that places commercial financing with direct capital sources; it does not lend, fund, or approve loans, and the capital source sets final terms.
Edward L. Freeman founded PeerSense in January 2020.
In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page

Last reviewed October 2, 2026LinkedIn profile About Edward Freeman