Domestic private-label commercial mortgage-backed securities issuance reached $76.2 billion through the first seven months of 2026, according to Trepp data published Aug. 11, with office properties leading all sectors even as data centers emerged as a distinct securitized asset class for the first time.
Office was the single largest property type by issuance, accounting for 22.7% of the total, or $17.3 billion, narrowly ahead of industrial and multifamily, each at roughly 17.3%. Single-asset, single-borrower deals β loans backed by one property or one owner β made up $58.0 billion of total issuance, while conduit deals, which pool many smaller loans from different owners, accounted for $16.1 billion. A small remainder came from large-loan deals, Trepp said.
The composition diverges sharply by channel. Single-borrower issuance skewed toward office, industrial and lodging, which together accounted for 62.1% of that channel’s balance. Conduit issuance stayed anchored in more granular multifamily and retail collateral, which made up 35.5% of the conduit book versus just 22.9% of the single-borrower book.
Data centers appeared exclusively in the single-borrower channel, reaching 9.8% of single-borrower issuance and 7.5% of overall CMBS issuance in 2026 β evidence, according to Trepp, that the sector has grown large enough to be tracked as its own category and currently reaches the securitized debt market only through large, concentrated single-borrower deals rather than pooled conduit transactions.
Underwriting metrics also varied widely by property type. Multifamily loans carried the thinnest debt yield of any major property type at 8.20% β a measure of a property’s annual income as a percentage of its loan amount β while also carrying the highest loan-to-value ratio among major types at 68.4% and the lowest debt-service coverage ratio at 1.33x. Lodging loans carried the widest debt yield at 12.69%, reflecting income that swings with economic conditions and daily hotel operations, which lenders typically offset by requiring more income relative to loan proceeds.
Trepp noted that debt yield can be a more useful constraint than debt-service coverage ratio at loan maturity because it measures property income against the full loan balance independent of prevailing interest rates. On that measure, multifamily loans entered the market this year with the least cushion of any major property type.
What it means: The nearly 4.5-percentage-point gap between multifamily’s 8.20% debt yield and lodging’s 12.69% is a verified figure from Trepp’s loan-level data and reflects how differently lenders are pricing risk across property types this year. RealtyWire’s recent coverage of rising CMBS distress, concentrated in office loans, adds context: office is both the year’s largest issuance category and one of its most distressed, a combination that will keep testing lender underwriting discipline through the rest of 2026.
What to watch: Whether data centers’ securitization share keeps climbing as more single-borrower deals come to market β RealtyWire has separately covered Aligned Data Centers’ $1.18 billion securitization β and whether multifamily’s thin underwriting cushion becomes a bigger factor as loans from this vintage approach maturity.
