Does the mix of uses affect CMBS pricing?

Yes. Properties with a heavy retail or office component may see wider spreads than multifamily-dominant mixed-use. The strongest pricing comes from a balanced mix with credit tenants on the commercial side and high occupancy on the residential side.

Can I get CMBS on a live/work or retail-below-residential building?

Yes. Retail-below-residential is one of the most common mixed-use configurations in CMBS. The residential component provides stable base income while the retail provides upside through mark-to-market rents. Ground-floor retail with apartments above is a well-understood CMBS asset type.

What occupancy does a mixed-use building need for CMBS?

85%+ economic occupancy across all components is the standard minimum. Some conduits will finance at 80% if the vacancy is concentrated in one easily leasable component (e.g., one vacant retail bay in an otherwise full building) with strong historical demand.

Published: March 31, 2026·Last updated: September 7, 2026·By Ed Freeman, Capital Advisor. PeerSense

What is the best financing for mixed-use at 65% LTV?

Mixed-use properties combining retail, office, and residential components at 65% LTV qualify for CMBS non-recourse financing typically priced 6.75%–9% for stabilized assets, with the strongest sponsors at 60% LTV reaching 6.25% for 10-year terms. The diversified income stream from multiple use types provides cash flow stability that single-use properties lack, though CMBS underwriting analyzes each component separately to assess overall risk.

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

Prime: 6.75% 10-Yr Treasury: 4.78% Est. CMBS Range: 6.25% – 11%+ (typical 6.75% – 9%)as of Sep 7, 2026

Mixed-Use

Mixed-Use CMBS Financing at 65% LTV

Mixed-use properties at 65% LTV qualify for CMBS non-recourse financing from approximately 6.25% on the strongest stabilized deals (typical 6.75%–9%). Retail/office/residential combinations with diversified income streams and stabilized NOI.

Minimum 30-35% equity required. Mixed-use property owners with stabilized assets at 85%+ occupancy across all components, diversified tenant base, and demonstrated operating history of at least 12 months.

Talk to PeerSense Call (317) 452-6990

KEY TERMS

Deal Parameters at a Glance

LTV Target

65%

Est. Rate Range

6.25% – 11%+ (typical 6.75% – 9%)

Term

5-10 years fixed

Recourse

Non-recourse

DSCR

1.25x minimum

Closing Speed

45-60 days

Min Loan Size

$10 million and up

Loan Products

CMBS

Indicative only, as of September 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.

FIT ASSESSMENT

When Is This the Right Fit?

CMBS is ideal for mixed-use properties at 65% LTV when the asset is stabilized across all components and you want non-recourse terms. Banks often struggle with mixed-use underwriting because they must categorize the property into a single asset class, which can result in conservative valuations. CMBS conduits evaluate each component independently and aggregate the income, which often produces higher proceeds. This structure works best when no single component exceeds 70% of total income, creating true diversification. If one use dominates, consider financing under that asset class instead.

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

ADVANTAGES

Key Benefits

Non-recourse financing on assets that banks often require full recourse for

Diversified income streams reduce single-tenant or single-use concentration risk

10-year fixed rate provides certainty through economic cycles

Mixed-use properties in urban infill locations command premium valuations

CMBS underwriting can accommodate complex rent rolls across multiple use types

ALTERNATIVES

Strategic Alternatives

CMBS Loans for Grocery-Anchored Retail

If the retail component is dominant with a grocery anchor

Learn more

Multifamily CMBS Non-Recourse

If the residential component is dominant (70%+ of income)

Learn more

Medical Office CMBS Refinance

If the property is primarily medical office with ancillary retail

Learn more

Frequently Asked Questions

Conduits analyze each component (retail, office, residential) separately, applying different cap rates and vacancy assumptions to each. The components are then aggregated to determine overall property value and NOI. This granular approach often produces higher valuations than bank single-category underwriting.

See Related Rates by Program

PeerSense covers the full commercial capital stack. Indicative levels that lenders in our network have been pricing across these programs, as of September 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

0.5–3.5% / 30d

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

See current rates

Bridge Loans

9.00–14.00%

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

See current rates

Private Credit

7.80–18.00%

Non-bank flexibility. Public CRE floor $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. Public CRE floor $10 million and up.

See current rates

Connect with PeerSense, Direct Capital Advisory

PeerSense pre-underwrites every deal before presenting it to our institutional capital sources. With a curated network of lender relationships and live market rate intelligence, we match your mixed-use deal with the right capital source, right now.

Scan Your Deal (30 sec)Talk to PeerSense Call (317) 452-6990

Fee at closing only · Complimentary initial consultation

Published by PeerSense Capital Advisory · Written by Ed Freeman, Founder. Updated September 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 September 2026 and may not reflect current conditions at the time of reading. PeerSense sources capital through a curated network of commercial lenders and capital sources. 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.