Does tenant mix affect CMBS pricing for mixed-use?

Yes. Credit tenants (national retailers, professional services firms) receive tighter pricing than mom-and-pop tenants. Mixed-use properties with medical office, government agencies, or national retail chains command the best conduit spreads.

Can I finance a mixed-use building with vacant office floors?

CMBS conduits underwrite to in-place leases only. Vacant space receives no income credit. If your office component has significant vacancy, consider a bridge loan to fund tenant improvements and lease-up before pursuing CMBS permanent financing.

What is the minimum percentage split for CMBS mixed-use?

There is no strict minimum, but conduits prefer neither component to be less than 20% of total income. Properties with 80%+ office and minimal retail are underwritten as office. Balanced splits (40/60 or 50/50) are viewed most favorably for the diversification benefit.

Published: March 31, 2026·Last updated: May 16, 2026·By Ed Freeman, Capital Advisor — PeerSense

What is the best financing for mixed-use (retail + office) at 65% LTV?

Mixed-use retail and office properties at 65% LTV qualify for non-recourse CMBS financing with fixed rates typically priced 6.75%–9% for stabilized assets, with the strongest sponsors at 60% LTV reaching 6.25% for 10-year terms. Properties combining ground-floor retail with upper-floor office space benefit from diversified income streams that conduits view favorably, provided overall occupancy exceeds 85% and weighted average lease term is 5+ years.

Published by PeerSense Capital Advisory · Written by Ed Freeman, Founder

Prime: 6.75% 10-Yr Treasury: 4.25% Est. CMBS Range: 6.25% – 11%+ (typical 6.75% – 9.5%)as of Mar 19, 2026

Mixed-Use (Retail + Office)

CMBS Mixed-Use Retail & Office Financing

Mixed-use properties with retail and office components at 65% LTV qualify for CMBS non-recourse financing from approximately 6.25% on the strongest stabilized deals (typical 6.75%–9%). Diversified tenant base strengthens underwriting for stabilized assets.

Minimum 30-35% equity required. Owners of stabilized mixed-use properties with diversified retail and office tenants, 85%+ occupancy, and no single tenant representing more than 40% of gross income.

Discuss Your Mixed-Use (Retail + Office) Deal Call (317) 452-6990

KEY TERMS

Deal Parameters at a Glance

LTV Target

65%

Est. Rate Range

6.25% – 11%+ (typical 6.75% – 9.5%)

Term

5-10 years fixed

Recourse

Non-recourse

DSCR

1.25x minimum

Closing Speed

45-60 days

Min Loan Size

$3M

Loan Products

CMBS

FIT ASSESSMENT

When Is This the Right Fit?

This financing fits when your mixed-use property is 85%+ occupied with a balanced mix of retail and office tenants. CMBS conduits evaluate mixed-use properties based on the dominant use: if retail exceeds 50% of income, it is underwritten as retail; if office dominates, it is underwritten as office. The diversification benefit comes from multiple income streams reducing vacancy risk. Urban and transit-oriented mixed-use assets receive the tightest pricing. If your property has significant vacancy in either component, stabilize before pursuing CMBS. Properties with residential components may require separate underwriting treatment.

Want the full program overview, current rate sheet, and underwriting matrix? See the CMBS Loans guide →

ADVANTAGES

Key Benefits

Diversified retail + office income reduces single-tenant concentration risk

Non-recourse CMBS terms protect personal assets on mixed-use assets

Ground-floor retail generates higher per-square-foot revenue than pure office

Urban mixed-use assets benefit from live-work-play demand fundamentals

Fully assumable CMBS debt enhances property value at disposition

ALTERNATIVES

Strategic Alternatives

Mixed-Use CMBS 65% LTV

If your mixed-use property includes residential or other components beyond retail and office

Learn more

CMBS Loans for Grocery-Anchored Retail

If your property is primarily grocery-anchored retail with minimal office

Learn more

Private Credit for Value-Add CRE

If your mixed-use property needs repositioning before qualifying for CMBS

Learn more

Frequently Asked Questions

Conduits evaluate each component separately and then blend. Retail and office spaces are underwritten at their respective market rates with appropriate vacancy assumptions. The blended NOI must support 1.25x DSCR. Lenders prefer no single tenant exceeding 30-40% of total income.

See Related Rates by Program

PeerSense covers the full commercial capital stack. Rates and structures across our money pages — updated weekly.

SBA 7(a) & 504

5.50–11.75%

Up to $5M acquisition / real estate / equipment, 10% down

See current rates

Bridge Loans

9.00–14.00%

12–36 mo transitional, SOFR + 470-970 bps, 65-75% LTV

See current rates

DSCR Investor

5.95–8.50%

30-yr fixed rental, qualifies on property cash flow

See current rates

Equipment Financing

5.50–12.00%

Loan, lease, SBA 504, vendor, captive — Section 179 eligible

See current rates

Hotel Financing

5.85–11.75%

CMBS + SBA 504 + bridge + PIP across all flags

See current rates

Mezzanine Debt

11.00–18.00%

Subordinate to senior, $1M–$50M, capital stack fill

See current rates

Private Credit

7.80–18.00%

Non-bank flexibility, unitranche, recap, transitional

See current rates

Invoice Factoring + ABL

0.5–3.5% / 30d

B2B receivables, trucking / staffing / construction / govt

See current rates

No-Doc CRE

7.50–11.50%

Limited-doc commercial, asset-based underwriting

See current rates

Connect with PeerSense — Direct Capital Advisory

PeerSense pre-underwrites every deal before presenting it to our institutional capital sources. With 500+ lender relationships and live market rate intelligence, we match your mixed-use (retail + office) deal with the right capital source — right now.

Scan Your Deal (30 sec)Tell Us About Your Deal Call (317) 452-6990

No upfront retainer · Fee at closing only · Complimentary initial consultation

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

Disclaimer: The information on this page is provided for educational purposes only and does not constitute financial, legal, or investment advice. Rates, terms, and availability are subject to change based on market conditions, property characteristics, and borrower qualifications. The rate ranges cited reflect approximate market pricing as of March 2026 and may not reflect current conditions at the time of reading. PeerSense is a capital advisory firm, not a lender. We do not originate, fund, or service loans. All financing is provided by third-party lenders subject to their own underwriting criteria and approval processes. Borrowers should consult with qualified financial and legal professionals before making any financing decisions.