Why is hotel CMBS pricing materially wider than multifamily?

May 2026 hotel CMBS spreads are 320-345 bps over 10-yr Treasury vs. multifamily 190-215 bps — a ~125 bps gap. Three structural reasons: (1) Operating-business cash flow — hotels are operating businesses with daily revenue volatility, not passive real estate. (2) RevPAR cyclicality — peak-to-trough swings 20-40% in cycles. (3) Brand-flag concentration risk — termination drops asset value 20-40%. Conduits price all three risks via wider spread + tighter LTV (60-65% vs 65-70%) + tighter DSCR (1.40x vs 1.25x) + higher debt yield (12.0% vs 8.5%).

What are the LTV/DSCR/Debt Yield thresholds CMBS desks underwrite to?

May 2026 CMBS underwriting thresholds by property type: Multifamily/MHC — 65-70% LTV, 1.25x DSCR, 8.5% Debt Yield minimum. Commercial (Retail/Office/Industrial) — 65-70% LTV, 1.25x DSCR, 8.5% DY. Hotel — 60-65% LTV, 1.40x DSCR, 12.0% DY. Self-Storage — 65-70% LTV, 1.35x DSCR, 9.0% DY. The smallest of the three constraints binds the deal — typically debt yield on multifamily at low cap rates, LTV on office, and debt yield on hotel.

How much spread reduction do low-leverage borrowers get?

Low-leverage CMBS borrowers (50%-60% LTV) typically get approximately 25 bps spread reduction vs. the 65-70% LTV pricing band. Worked example: $20M multifamily CMBS at 65% LTV prices at 6.21-6.46%; same deal at 55% LTV prices at 5.96-6.21%. The spread compression reflects bondholders' preference for lower-leverage paper in the CMBS pool — lower LTV = lower loss-given-default exposure to bond classes.

Does CMBS conduit cover unstabilized or construction properties?

No — CMBS conduit is for STABILIZED properties only. Ground-up construction + heavy rehab + non-stabilized assets need a bridge loan as the interim financing. Standard institutional pattern: bridge debt 9-11% IO during 12-36 month value-add or lease-up, then refinance into permanent CMBS at the rates above once stabilized (12+ months trailing NOI on completed renovations). PeerSense routes both legs of the bridge-to-CMBS capital stack.

What are the current CMBS spreads over Treasury (April 27, 2026)?

April 27, 2026 indicative CMBS conduit spreads over matched-maturity Treasury: 10-yr Multifamily 190-215 bps, 10-yr Commercial 200-225 bps, 10-yr Hotel 320-345 bps, 10-yr Self-Storage 200-225 bps. Treasury baselines: 10-yr 4.31%, 7-yr 4.10%, 5-yr 3.92% (interpolated 7-yr swap). The 7-yr/5-yr Treasury inversion (5-yr lower than 7-yr) is currently flatter than typical curves — meaning short-term CMBS doesn't price meaningfully cheaper than long-term.

Current CMBS Conduit Loan Rates — Live Indicative Pricing

Q: What are current CMBS conduit rates by property type (April 27, 2026)?

April 27, 2026 indicative CMBS conduit pricing: 10-yr Multifamily/MHC 6.21-6.46% (190-215 bps over 10-yr Treasury 4.31%), 10-yr Commercial (Retail/Office/Industrial) 6.31-6.56% (200-225 bps), 10-yr Hotel 7.51-7.76% (320-345 bps), 10-yr Self-Storage 6.31-6.56% (200-225 bps). 7-yr Multifamily 6.10-6.35% (200-225 bps over 7-yr 4.10%). 5-yr Multifamily 6.07-6.32% (215-240 bps over 5-yr 3.92%). Stabilized $4M–$100M properties. Each deal individually priced.

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Written by Ed Freeman, Capital Advisor — PeerSense

Published May 1, 2026Updated May 1, 20265 min read

Sources: Federal Reserve H.15 (Treasury Yields), Trepp CMBS Issuance & Spreads, MBA CREF Quarterly

Quick Answer

What are current CMBS conduit rates by property type (April 27, 2026)?

As of April 27, 2026: 10-yr Multifamily 6.21–6.46%, Commercial (Retail/Office/Industrial) 6.31–6.56%, Hotel 7.51–7.76%, Self-Storage 6.31–6.56%. Spreads over 10-yr Treasury (4.31%): Multifamily 190-215 bps · Commercial 200-225 · Hotel 320-345 · Self-Storage 200-225. Stabilized $4M–$100M properties.

— PeerSense Capital Advisory · April 27, 2026

10-Year Fixed-Rate CMBS (25 / 30-Yr Amortization)

Spread over 10-yr Treasury (4.31%). Non-recourse + bad-boy carve-outs.

Property Type	Max LTV	Min DSCR	Min Debt Yield	Spread (bps)	All-In Rate
Multifamily / MHC	65-70%	1.25x	8.5%	190-215 bps	6.21–6.46%
Commercial (Retail / Office / Industrial)	65-70%	1.25x	8.5%	200-225 bps	6.31–6.56%
Hotel	60-65%	1.40x	12.0%	320-345 bps	7.51–7.76%
Self-Storage	65-70%	1.35x	9.0%	200-225 bps	6.31–6.56%

7-Year Fixed-Rate CMBS (25 / 30-Yr Amortization)

Spread over interpolated 7-yr swap rate (4.10%). Mid-tenor option for sponsors with 5-7 year hold thesis.

Property Type	Spread (bps)	All-In Rate
Multifamily / MHC	200-225 bps	6.10–6.35%
Commercial (Retail / Office / Industrial)	210-235 bps	6.20–6.45%
Hotel	330-355 bps	7.40–7.65%
Self-Storage	210-235 bps	6.20–6.45%

5-Year Fixed-Rate CMBS (25 / 30-Yr Amortization)

Spread over 5-yr Treasury (3.92%). Counter-intuitive May 2026 finding: 5-yr CMBS often prices WIDER than 10-yr because the curve is unusually flat — see 5-yr vs 7-yr vs 10-yr decision framework.

Property Type	Spread (bps)	All-In Rate
Multifamily / MHC	215-240 bps	6.07–6.32%
Commercial (Retail / Office / Industrial)	225-250 bps	6.17–6.42%
Hotel	345-370 bps	7.37–7.62%
Self-Storage	225-250 bps	6.17–6.42%

Low-Leverage Pricing Advantage (50%–60% LTV)

Borrowers willing to lever at 50–60% LTV (vs. the 65–70% standard) typically receive approximately 25 bps spread reduction. Worked example: $20M multifamily CMBS at 65% LTV prices 6.21–6.46%; same deal at 55% LTV prices 5.96–6.21%.

Why: bondholders prefer lower-leverage paper in the CMBS pool — lower LTV = lower loss-given-default exposure to bond classes. The pricing benefit is consistent across all property types and tenors.

What These Rates Assume

Stabilized property only. 90%+ occupancy on multifamily, sustained NOI on commercial, RevPAR run-rate on hotel. No ground-up construction. No heavy-rehab. Unstabilized properties route to bridge debt as interim financing.
Full-narrative MAI appraisal. Appraised value drives LTV — restricted appraisals or desktop reviews are not eligible.
SPE borrower entity. Single-Purpose Entity required at closing. Bankruptcy-remote structure.
Underwritten net cash flow. Includes vacancy reserves + replacement reserves + market-rate management fee. Pro-forma NOI is rejected; trailing 12-month operating data with adjustments.
Sponsor strength. 720+ FICO institutional sponsors price tightest within the band. Sub-680 FICO + recent credit events typically wider or rejected.
Indicative pricing only. Each deal individually priced based on conduit pool composition, B-piece buyer appetite, and market timing at rate-lock.

Key Definitions

LTV (Loan-to-Value): Loan amount divided by appraised value, established by full-narrative MAI appraisal. Full LTV definition →
DSCR (Debt Service Coverage Ratio): Annual underwritten net cash flow (with vacancy and reserves) divided by annual mortgage payment. Full DSCR definition →
Debt Yield: Underwritten net cash flow (with vacancy and reserves) divided by loan amount. Full Debt Yield definition →

Where to Go Next

Property-type-specific drill-downs at Multifamily CMBS, Hotel CMBS, Industrial CMBS, Office CMBS, Retail CMBS, Self-Storage CMBS. Run scenarios in the Debt Yield Calculator, Bridge-to-CMBS Calculator, or CMBS Defeasance Calculator. Read the CMBS Graduation Strategy pillar for the full bridge-to-permanent capital stack pattern.

Get a Property-Specific Indicative Quote

No retainer. No application fee. PeerSense pre-clears the 3-constraint underwriting (DSCR / LTV / Debt Yield) against current conduit pool composition before formal CMBS submission. Pre-cleared files close 14–28 days faster + price 25–50 bps tighter.

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Editorial integrity: Rates compiled by PeerSense Capital Advisory. PeerSense is a capital advisory firm, not a lender. Content is for educational purposes only. Indicative pricing reflects approximate April 27, 2026 market conditions and may not reflect conditions at time of reading. Spreads and pricing vary by sponsor, property profile, leverage, and conduit pool composition. Each deal is individually priced. Consult an active CMBS originator for transaction-specific quotes.