Is Your Deal CMBS-Ready?
The Gold Standard for commercial real estate financing: non-recourse, fixed-rate, 10-year money at the lowest available rates. Find out if your deal qualifies.
PeerSense specializes in well-capitalized refinances and acquisitions. Minimum 30-35% equity required.
How do you qualify for a CMBS loan?
A deal qualifies for CMBS when it clears five thresholds at once: a loan size of $5M+ (below that, conduit securitization economics do not work), a stabilized property at roughly 90%+ occupancy with a trailing twelve-month operating history, DSCR of 1.25x to 1.30x depending on property type, LTV of 65% to 75% (65% is the working anchor), and a debt yield of 7.5% to 10% by property type. Loan size is set by whichever of the DSCR, LTV, and debt yield tests produces the smallest number, and sponsors are most often surprised because they run DSCR in their head while LTV or debt yield is the test that actually binds. You also need an experienced sponsor, clean environmental and title, and no material near-term lease rollover concentration.
- If the asset is not yet stabilized: it is a bridge conversation, not a conduit one. The standard path is bridge through stabilization, then refinance into 10-year CMBS at par.
- What you get for clearing the bar: non-recourse with standard carve-outs, a 10-year fixed rate, 30-year amortization, and a loan that is fully assumable by a qualified buyer at a later sale.
- Timeline: 60 to 90 days from term sheet to funding on a clean stabilized deal, longer where any part of the asset is transitional.
Run the checklist below to see which of the five thresholds your deal clears. PeerSense is an independent capital advisor and does not lend, it pre-runs the three-constraint sizing and places the deal with the capital sources in its network.
Sources: CMBS conduit DSCR, LTV, and debt yield minimums by property type reflect current underwriting parameters observed across the conduit capital sources in the PeerSense network as of July 2026. Indicative and deal-specific; all sizing subject to appraisal, third-party reports, and lender underwriting.
1.Is the property stabilized with at least 85% occupancy?
2.Is your target LTV 75% or lower?
3.Does the property generate a DSCR of 1.25x or higher?
4.Is the loan amount $5 million or more?
5.Are you seeking non-recourse debt?
6.Is the property in a primary or secondary market?
7.Do you have a net worth of at least 25% of the loan amount?
8.Do you have liquidity of at least 5% of the loan amount?
9.Do your major tenants have 5+ years remaining on their leases?
10.Have tenants made significant improvements (TI) to their spaces?
11.If ground lease: does it extend 10+ years beyond loan maturity?
Why 65% LTV Is the Gold Standard
At 65% LTV, your deal is over-collateralized. CMBS conduits compete for these deals because they represent the lowest risk in their securitization pool. The benefits:
- Lowest Available Rates: Conduit spreads tighten significantly below 65% LTV. You access pricing that bank and bridge lenders cannot match.
- Maximum Cash-Out Potential: Over-collateralization gives you room to extract equity while maintaining attractive debt metrics for the securitization.
- Express Underwriting: 14-21 days vs. the standard 45-90 day timeline for low-leverage deals with strong sponsorship.
- Fully Non-Recourse Terms: Your personal assets are protected. The property is the sole collateral, with only standard bad boy carve-outs.
What If CMBS Isn't the Right Fit?
SBA 504
If you occupy 51%+ of the building, an SBA 504 offers a 25-year fixed rate that CMBS can't match.
Learn about SBA 504 →Bridge Loan
Need to stabilize first? A Bridge Loan lets you renovate or lease up, then refinance into CMBS in 12 months.
Explore Bridge Loans →Conventional Bank
Planning to sell in 3 years? A conventional loan avoids CMBS defeasance penalties.
Discuss your options →Understanding Defeasance
CMBS loans use defeasance or yield maintenance for early exits. Defeasance replaces the property collateral with U.S. Treasury bonds that replicate the remaining payment schedule, releasing the property from the mortgage.
Negative Defeasance: Turning a Penalty Into Profit
In high-rate environments (2024-2026), the cost of purchasing required Treasury bonds can be lower than the loan's principal balance. This means borrowers may actually profit from defeasing their CMBS loan -- a counterintuitive but well-documented benefit that sophisticated sponsors leverage for early exits.
CMBS-Ready Property Types
CMBS conduits lend across all major commercial property types. Necessity-based retail and post-PIP hotels are among the most sought-after collateral in 2026.
Retail (Grocery-Anchored, Necessity-Based)
Hotels (Post-PIP, Stabilized RevPAR)
Industrial / Warehouse
Medical Office
Multifamily (5+ Units)
Mixed-Use
Self-Storage
We Don't Just Place Deals -- We Pre-Underwrite Them
With a curated network of institutional capital sources and live market rate intelligence, we match your deal to the conduit most likely to close it.
Disclaimer: PeerSense is not a lender, bank, or financial institution. We are a capital advisory firm that connects borrowers with potential lending partners. 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.