Explosive Growth in CRE CLO Leads YoY New Issuance Growth in all Sectors

-

November 17, 2025

A CRED iQ Preliminary Analysis

DATA HEREIN PROVIDED TO CRED IQ IS FROM A PRELIMINARY PROSPECTUS AND MAY BE AMENDED OR SUPPLEMENTED PRIOR TO TIME OF SALE

Deal Overview

The BANK5 2025-5YR18 CMBS deal is a new issuance securitization for the CMBS market, with a total pooled balance of $709.9 million. The deal is jointly managed by prominent financial institutions including Wells Fargo, JP Morgan, Morgan Stanley, and Bank of America. The deal is collateralized by 29 loans and secured by 72 properties across a variety of sectors, including multifamily, hospitality, and retail. The strategic geographic distribution of these properties ensures balanced exposure across major markets. The deal’s weighted average loan-to-value (LTV) ratio of 58.1%, and the weighted average mortgage interest rate is 6.15%.

Key Metrics

The loan pool for BANK5 2025-5YR18 is structured to include a mix of amortizing and interest-only loans, with 22.4% of the mortgage pool having scheduled amortization. The remainder of the pool (77.6%) consists of interest-only payments throughout the loan term, offering investors a steady income stream. The pool boasts a weighted average debt service coverage ratio (DSCR) of 1.84. The weighted average net operating income (NOI) debt yield is 12.6%.

Geography & Property Types

A key strength of the BANK5 2025-5YR18 CMBS deal is its diverse property type distribution, which enhances portfolio resilience. Multifamily properties constitute 24.9% of the total balance, while hospitality properties account for 19.3% of the balance. The geographic distribution of the properties across prime markets, including high-growth areas in New York City, Tampa, and Albuquerque.

About CRED iQ

CRED iQ is a market data provider that offers a robust suite of data and software solutions tailored for commercial real estate and finance professionals.

With over $2.3 trillion of CRE loans, CRED iQ delivers instant access to a comprehensive range of financial data and analytics for millions of properties in every market. CRED iQ’s data and analytical capabilities are instrumental in helping investors, lenders and brokers make informed and strategic decisions critical to their business.

THE DATA, INFORMATION AND/OR RELATED MATERAL (“DELIVERABLES”) IS BEING OFFERED AS-IS/WHERE-AS CONDITION. CRED-IQ MAKES NO REPRESENTATION OR WARRANTY AS TO QUALITY OR ACCURACY OF SUCH DELIVERABLES BEING PURCHASED, WHETHER EXPRESS OR IMPLIED, EITHER IN FACT OR BY OPERATION OF LAW, STATUTE, OR OTHERWISE, AND CRED-IQ SPECIFICALLY DISCLAIMS ANY AND ALL IMPLIED OR STATUTORY WARRANTIES INCLUDING WARRANTIES OF MERCHANTABILITY AND OF FITNESS FOR A PARTICULAR PURPOSE, TECHNICAL PERFORMANCE, AND NON-INFRINGEMENT. WITHOUT LIMITING THE FOREGOING, YOU AS CUSTOMER ACKNOWLEDGE THAT YOU HAVE NOT AND ARE NOT RELYING UPON ANY IMPLIED WARRANTY OF MERCHANTABILITY OR OF FITNESS FOR A PARTICULAR PURPOSE OR OTHERWISE, OR UPON ANY REPRESENTATION OR WARRANTY WHATSOEVER AS TO THE DELIVERABLES IN ANY REGARDS WHATSOEVER, AND ACKNOWLEDGE THAT CRED-IQ MAKES NO, AND HEREBY DISCLAIMS ANY, REPRESENTATION, WARRANTY OR GUARANTEE THAT THE PURCHASE, USE OR COMMERCIALIZATION OF ANY DELIVERABLES WILL BE USEFUL TO YOU OR FREE FROM INTERFERENCE. BY ACCEPTANCE OF THE DELIVERABLES, YOU HEREBY RELEASE CRED-IQ AND ITS AFFILIATES AND AGENTS FROM ALL CLAIMS, DAMAGES AND LIABILITY ARISING HEREUNDER.

CRE CLO Distress Rate hits the Lowest Level of 2025 While Non-Performing Maturities Soar

By

-

November 13, 2025

Explore All CRE CLO Distressed Loans

The CRED iQ CRE CLO distressed rate notched its second consecutive reduction, reaching the lowest mark of 2025. CRE CLO issuance year-to-date as of November 2025 totals $25 billion, which compares to $8.7 billion, this same time last year, showing a remarkable rebound for the sector. Meanwhile, loans that have passed their maturity dates grew and non-performing matured loans added a whopping 720 basis points (BPS) to 43.0%.

Delinquency and Special Servicing Dynamics

The CRED iQ distressed rate compressed for the second consecutive month to 10.7% in October, down 82 basis points (BPS) MoM and 144 bps year-over-year from October 2024’s 12.1%.

The CRE CLO delinquency (DQ) rates in CRE CLOs ticked down to 8.5% in October from 9.2% in September, marking a month-over-month (MoM) decline of 76 BPS. This follows a volatile 2025, where DQ peaked at 12.2% in February before easing. The CRE CLO special servicing (SS) rate added 5 BPS to 7.3% from 7.2%.

Payment Status Breakdown

Payment statuses reveal a maturing portfolio, with 66.3% of ALA in matured loans ($3.8 billion), split between performing (23.3%) and non-performing (43.0%) categories. Current loans shaved 100 BPS to18.2% ($1.0 billion), while late payments (<30 days DQ jumped from 0.5% in September to 2.5% ($142 million). Delinquent loans saw a reduction from 19.0% in September to 13.0% in this October print.

Case Study

A $70.3 million loan backed by Outlook DTC, a 242-unit multifamily property in Denver’s Southeast submarket, has fallen to non-performing matured status after failing to pay off at its October 2025 maturity. The loan was added to the servicer’s watchlist in August 2025 due to declining occupancy and approaching maturity. The property most recently reported an occupancy of 79.8% and a DSCR of 0.77, signaling continued cash flow stress ahead of default.

About CRED iQ

CRED iQ is a market data provider that offers a robust suite of data and software solutions tailored for commercial real estate and finance professionals.

With over $2.3 trillion of CRE loans, CRED iQ delivers instant access to a comprehensive range of financial data and analytics for millions of properties in every market. CRED iQ’s data and analytical capabilities are instrumental in helping investors, lenders and brokers make informed and strategic decisions critical to their business.

THE DATA, INFORMATION AND/OR RELATED MATERAL (“DELIVERABLES”) IS BEING OFFERED AS-IS/WHERE-AS CONDITION. CRED-IQ MAKES NO REPRESENTATION OR WARRANTY AS TO QUALITY OR ACCURACY OF SUCH DELIVERABLES BEING PURCHASED, WHETHER EXPRESS OR IMPLIED, EITHER IN FACT OR BY OPERATION OF LAW, STATUTE, OR OTHERWISE, AND CRED-IQ SPECIFICALLY DISCLAIMS ANY AND ALL IMPLIED OR STATUTORY WARRANTIES INCLUDING WARRANTIES OF MERCHANTABILITY AND OF FITNESS FOR A PARTICULAR PURPOSE, TECHNICAL PERFORMANCE, AND NON-INFRINGEMENT. WITHOUT LIMITING THE FOREGOING, YOU AS CUSTOMER ACKNOWLEDGE THAT YOU HAVE NOT AND ARE NOT RELYING UPON ANY IMPLIED WARRANTY OF MERCHANTABILITY OR OF FITNESS FOR A PARTICULAR PURPOSE OR OTHERWISE, OR UPON ANY REPRESENTATION OR WARRANTY WHATSOEVER AS TO THE DELIVERABLES IN ANY REGARDS WHATSOEVER, AND ACKNOWLEDGE THAT CRED-IQ MAKES NO, AND HEREBY DISCLAIMS ANY, REPRESENTATION, WARRANTY OR GUARANTEE THAT THE PURCHASE, USE OR COMMERCIALIZATION OF ANY DELIVERABLES WILL BE USEFUL TO YOU OR FREE FROM INTERFERENCE. BY ACCEPTANCE OF THE DELIVERABLES, YOU HEREBY RELEASE CRED-IQ AND ITS AFFILIATES AND AGENTS FROM ALL CLAIMS, DAMAGES AND LIABILITY ARISING HEREUNDER.

CRED iQ Distress Update: October Rate Climbs to 11.4%, Nearing All-Time High

By

-

November 7, 2025

Explore All Distressed Loans

CMBS investors tracking distress signals saw the CRED iQ distressed rate rise 13 basis points in October to 11.41%, reversing half of September’s 50 bps decline and inching closer to the cycle peak. Our analysis covers approximately $600 billion in private-label CMBS conduit and SASB loans, providing a granular view of sector performance and loan-level risks. The delinquency rate held steady at 8.59%, while the specially serviced rate increased 38 bps to 11.00%. This uptick reflects ongoing resolution challenges, particularly for matured loans. CRED iQ’s distress rate combines any loan with the special servicer or 30 days delinquent or worse.

Sector Distress Breakdown (October 2025 vs. Q1 2025)

Property Type	October 2025 Distress	Change from Q1 2025
Office	17.5%	-170 bps
Hotel	10.4%	-110 bps
Multifamily	10.3%	-270 bps
Retail	9.2%	+60 bps
Manufactured Housing	1.8%	N/A
Industrial	1.5%	+100 bps
Self-Storage	0.1%	-170 bps

Office continues to dominate distress at 17.5%, driven by hybrid work trends and maturing debt. Hotels (10.4%) and multifamily (10.3%) remain elevated but have improved since March, benefiting from seasonal demand and rent growth stabilization. Retail’s 9.2% rate edges higher amid e-commerce pressures. In contrast, industrial (1.5%), manufactured housing (1.8%), and self-storage (0.1%) operate with minimal stress, underscoring their resilience in a high-rate environment.

Payment Status Insights from Distressed Loans

Current: 21.5%
Late but less than 30 Days: 3.3%
30 Days DQ: 4.4%
60 Days DQ: 2.0%
90+ Days DQ: 11.8%
Performing Matured: 16.3%
Non-Performing Matured: 40.9%

The shift toward non-performing matured loans signals mounting extension risks and potential forced sales ahead of 2026 maturities. For investors, these metrics highlight selective opportunities in underperforming offices and hotels, while favoring allocations to industrial and self-storage.

Informed with CRED iQ

As the CRE sector continues to adapt to macroeconomic shifts, CRED iQ’s comprehensive analytics offer a critical resource for decision-makers. For a deeper dive into our data or to discuss how these trends impact your portfolio, contact our team today. Stay tuned for our next update, where we’ll continue to track the metrics driving the CMBS market.

For more information, visit CRED-iQ.com or reach out to our research team at Team@CRED-iQ.com.

About CRED iQ

CRED iQ is a market data provider that offers a robust suite of data and software solutions tailored for commercial real estate and finance professionals.

With over $2.3 trillion of CRE loans, CRED iQ delivers instant access to a comprehensive range of financial data and analytics for millions of properties in every market. CRED iQ’s data and analytical capabilities are instrumental in helping investors, lenders and brokers make informed and strategic decisions critical to their business.

THE DATA, INFORMATION AND/OR RELATED MATERAL (“DELIVERABLES”) IS BEING OFFERED AS-IS/WHERE-AS CONDITION. CRED-IQ MAKES NO REPRESENTATION OR WARRANTY AS TO QUALITY OR ACCURACY OF SUCH DELIVERABLES BEING PURCHASED, WHETHER EXPRESS OR IMPLIED, EITHER IN FACT OR BY OPERATION OF LAW, STATUTE, OR OTHERWISE, AND CRED-IQ SPECIFICALLY DISCLAIMS ANY AND ALL IMPLIED OR STATUTORY WARRANTIES INCLUDING WARRANTIES OF MERCHANTABILITY AND OF FITNESS FOR A PARTICULAR PURPOSE, TECHNICAL PERFORMANCE, AND NON-INFRINGEMENT. WITHOUT LIMITING THE FOREGOING, YOU AS CUSTOMER ACKNOWLEDGE THAT YOU HAVE NOT AND ARE NOT RELYING UPON ANY IMPLIED WARRANTY OF MERCHANTABILITY OR OF FITNESS FOR A PARTICULAR PURPOSE OR OTHERWISE, OR UPON ANY REPRESENTATION OR WARRANTY WHATSOEVER AS TO THE DELIVERABLES IN ANY REGARDS WHATSOEVER, AND ACKNOWLEDGE THAT CRED-IQ MAKES NO, AND HEREBY DISCLAIMS ANY, REPRESENTATION, WARRANTY OR GUARANTEE THAT THE PURCHASE, USE OR COMMERCIALIZATION OF ANY DELIVERABLES WILL BE USEFUL TO YOU OR FREE FROM INTERFERENCE. BY ACCEPTANCE OF THE DELIVERABLES, YOU HEREBY RELEASE CRED-IQ AND ITS AFFILIATES AND AGENTS FROM ALL CLAIMS, DAMAGES AND LIABILITY ARISING HEREUNDER.

Announcing BBCMS 2025-5C38

By

-

November 3, 2025

A CRED iQ Preliminary Analysis

DATA HEREIN PROVIDED TO CRED IQ IS FROM A PRELIMINARY PROSPECTUS AND MAY BE AMENDED OR SUPPLEMENTED PRIOR TO TIME OF SALE

Deal Overview

The BBCMS 2025-5C38 CMBS deal is a new issuance securitization for the CMBS market, with a total pooled balance of $834.2 million. The deal is jointly managed by prominent financial institutions including Barclays, Citigroup, Goldman Sachs, and UBS. The deal is collateralized by 41 loans and secured by 76 properties across a variety of sectors, including office, hospitality, and retail. The strategic geographic distribution of these properties ensures balanced exposure across major markets. The deal’s weighted average loan-to-value (LTV) ratio of 60.0%, and the weighted average mortgage interest rate is 6.52%.

Key Metrics

The loan pool for BBCMS 2025-5C38 solely consists of interest-only payments throughout the loan term, offering investors a steady income stream. The pool boasts a weighted average debt service coverage ratio (DSCR) of 1.69. The weighted average net operating income (NOI) debt yield is 11.8%.

Geography & Property Types

A key strength of the BBCMS 2025-5C38 CMBS deal is its diverse property type distribution, which enhances portfolio resilience. Office properties constitute 23.9% of the total balance, while hospitality properties account for 23.2% of the balance. The geographic distribution of the properties across prime markets, including high-growth areas in New York City, San Jose, and Los Angeles.

About CRED iQ

CRED iQ is a market data provider that offers a robust suite of data and software solutions tailored for commercial real estate and finance professionals.

With over $2.3 trillion of CRE loans, CRED iQ delivers instant access to a comprehensive range of financial data and analytics for millions of properties in every market. CRED iQ’s data and analytical capabilities are instrumental in helping investors, lenders and brokers make informed and strategic decisions critical to their business.

THE DATA, INFORMATION AND/OR RELATED MATERAL (“DELIVERABLES”) IS BEING OFFERED AS-IS/WHERE-AS CONDITION. CRED-IQ MAKES NO REPRESENTATION OR WARRANTY AS TO QUALITY OR ACCURACY OF SUCH DELIVERABLES BEING PURCHASED, WHETHER EXPRESS OR IMPLIED, EITHER IN FACT OR BY OPERATION OF LAW, STATUTE, OR OTHERWISE, AND CRED-IQ SPECIFICALLY DISCLAIMS ANY AND ALL IMPLIED OR STATUTORY WARRANTIES INCLUDING WARRANTIES OF MERCHANTABILITY AND OF FITNESS FOR A PARTICULAR PURPOSE, TECHNICAL PERFORMANCE, AND NON-INFRINGEMENT. WITHOUT LIMITING THE FOREGOING, YOU AS CUSTOMER ACKNOWLEDGE THAT YOU HAVE NOT AND ARE NOT RELYING UPON ANY IMPLIED WARRANTY OF MERCHANTABILITY OR OF FITNESS FOR A PARTICULAR PURPOSE OR OTHERWISE, OR UPON ANY REPRESENTATION OR WARRANTY WHATSOEVER AS TO THE DELIVERABLES IN ANY REGARDS WHATSOEVER, AND ACKNOWLEDGE THAT CRED-IQ MAKES NO, AND HEREBY DISCLAIMS ANY, REPRESENTATION, WARRANTY OR GUARANTEE THAT THE PURCHASE, USE OR COMMERCIALIZATION OF ANY DELIVERABLES WILL BE USEFUL TO YOU OR FREE FROM INTERFERENCE. BY ACCEPTANCE OF THE DELIVERABLES, YOU HEREBY RELEASE CRED-IQ AND ITS AFFILIATES AND AGENTS FROM ALL CLAIMS, DAMAGES AND LIABILITY ARISING HEREUNDER.

Comparing Cap Rates & Interest Rates – Q3 2025 Round Up

By

-

October 31, 2025

The CRED iQ research team focused upon the underwriting of the latest market transactions. CRED iQ analyzed underwriting metrics for $31.5 billion in new issuances from the third quarter alone. We reviewed 576 loans across 51 deals. Interest rate and cap rate analysis by property type is highlighted below.

2025 YTD new issuances totaled $123.8 billion

Conduit: $20.8 billion
CRE CLO: $19.4 billion
Freddie Mac: $22.0 billion
SBLL: $61.5 billion

Q3 volumes were down across the board as compared to Q2.

Deals, balances, and loans saw reductions of 9%, 18%, and 50% respectively in Q3 vs. Q2

Deeper Dive – Recent Conduit Activity

According to the latest CRED iQ data, the grand total average interest rate across all commercial real estate property types stands at 6.57%, while the average cap rate registers at 6.34%. This narrow spread of just 23 basis points underscores a compressed yield environment, where borrowing costs remain elevated relative to capitalization rates. The overall figures reflect a market still adjusting to higher-for-longer interest rates, with debt service coverage potentially strained in sectors where cap rates fail to outpace financing expenses significantly.

Diving into property-type specifics, Hospitality leads with the highest average interest rate at 7.11% and the widest cap rate at 8.17%, yielding a healthy 106-basis-point buffer that supports robust valuation and refinancing flexibility in this recovery-sensitive sector. In contrast, Industrial properties exhibit the tightest spread, with an average interest rate of 6.72% against a 6.37% cap rate—only 35 basis points—highlighting vulnerability to further rate hikes amid e-commerce-driven demand but thinner margins for error. Multifamily follows closely behind the grand average, at 6.46% interest and 5.69% cap rate, indicating steady but unremarkable performance in a segment buoyed by rental demand yet pressured by construction costs and affordability challenges.

Notable outliers include Self Storage, boasting the lowest average interest rate at 6.37% alongside a 6.00% cap rate, which may signal favorable investor appetite for this resilient, low-maintenance asset class. Office properties, meanwhile, show a 6.71% interest rate and 7.38% cap rate, offering a 67-basis-point spread that provides some cushion despite ongoing hybrid-work headwinds. Investors monitoring these metrics should watch for cap rate expansion in underperforming sectors like Retail (6.68% interest, 6.44% cap) to restore equilibrium, as any widening could signal opportunistic buying windows in a maturing cycle.

Access CRED iQ Data

About CRED iQ

CRED iQ is a market data provider that offers a robust suite of data and software solutions tailored for commercial real estate and finance professionals.

With over $2.3 trillion of CRE loans, CRED iQ delivers instant access to a comprehensive range of financial data and analytics for millions of properties in every market. CRED iQ’s data and analytical capabilities are instrumental in helping investors, lenders and brokers make informed and strategic decisions critical to their business.

THE DATA, INFORMATION AND/OR RELATED MATERAL (“DELIVERABLES”) IS BEING OFFERED AS-IS/WHERE-AS CONDITION. CRED-IQ MAKES NO REPRESENTATION OR WARRANTY AS TO QUALITY OR ACCURACY OF SUCH DELIVERABLES BEING PURCHASED, WHETHER EXPRESS OR IMPLIED, EITHER IN FACT OR BY OPERATION OF LAW, STATUTE, OR OTHERWISE, AND CRED-IQ SPECIFICALLY DISCLAIMS ANY AND ALL IMPLIED OR STATUTORY WARRANTIES INCLUDING WARRANTIES OF MERCHANTABILITY AND OF FITNESS FOR A PARTICULAR PURPOSE, TECHNICAL PERFORMANCE, AND NON-INFRINGEMENT. WITHOUT LIMITING THE FOREGOING, YOU AS CUSTOMER ACKNOWLEDGE THAT YOU HAVE NOT AND ARE NOT RELYING UPON ANY IMPLIED WARRANTY OF MERCHANTABILITY OR OF FITNESS FOR A PARTICULAR PURPOSE OR OTHERWISE, OR UPON ANY REPRESENTATION OR WARRANTY WHATSOEVER AS TO THE DELIVERABLES IN ANY REGARDS WHATSOEVER, AND ACKNOWLEDGE THAT CRED-IQ MAKES NO, AND HEREBY DISCLAIMS ANY, REPRESENTATION, WARRANTY OR GUARANTEE THAT THE PURCHASE, USE OR COMMERCIALIZATION OF ANY DELIVERABLES WILL BE USEFUL TO YOU OR FREE FROM INTERFERENCE. BY ACCEPTANCE OF THE DELIVERABLES, YOU HEREBY RELEASE CRED-IQ AND ITS AFFILIATES AND AGENTS FROM ALL CLAIMS, DAMAGES AND LIABILITY ARISING HEREUNDER.

Announcing MSBAM 2025-5C2

By

-

October 28, 2025

A CRED iQ Preliminary Analysis

DATA HEREIN PROVIDED TO CRED IQ IS FROM A PRELIMINARY PROSPECTUS AND MAY BE AMENDED OR SUPPLEMENTED PRIOR TO TIME OF SALE

Deal Overview

The MSBAM 2025-5C2 CMBS deal is a new issuance securitization for the CMBS market, with a total pooled balance of $713.5 million. The deal is jointly managed by prominent financial institutions including Morgan Stanley, Bank of America, and KeyBanc. The deal is collateralized by 36 loans and secured by 164 properties across a variety of sectors, including multifamily, mixed use, and office. The strategic geographic distribution of these properties ensures balanced exposure across major markets. The deal’s weighted average loan-to-value (LTV) ratio of 59.9%, and the weighted average mortgage interest rate is 6.17%.

Key Metrics

The loan pool for MSBAM 2025-5C2 solely consists of interest-only payments throughout the loan term, offering investors a steady income stream. The pool boasts a weighted average debt service coverage ratio (DSCR) of 1.62. The weighted average net operating income (NOI) debt yield is 10.3%.

Geography & Property Types

A key strength of the MSBAM 2025-5C2 CMBS deal is its diverse property type distribution, which enhances portfolio resilience. Multifamily properties constitute 31.0% of the total balance, while mixed-use properties account for 27.3% of the balance. The geographic distribution of the properties across prime markets, including high-growth areas in New York City, Boston and Seattle.

About CRED iQ

CRED iQ is a market data provider that offers a robust suite of data and software solutions tailored for commercial real estate and finance professionals.

With over $2.3 trillion of CRE loans, CRED iQ delivers instant access to a comprehensive range of financial data and analytics for millions of properties in every market. CRED iQ’s data and analytical capabilities are instrumental in helping investors, lenders and brokers make informed and strategic decisions critical to their business.

THE DATA, INFORMATION AND/OR RELATED MATERAL (“DELIVERABLES”) IS BEING OFFERED AS-IS/WHERE-AS CONDITION. CRED-IQ MAKES NO REPRESENTATION OR WARRANTY AS TO QUALITY OR ACCURACY OF SUCH DELIVERABLES BEING PURCHASED, WHETHER EXPRESS OR IMPLIED, EITHER IN FACT OR BY OPERATION OF LAW, STATUTE, OR OTHERWISE, AND CRED-IQ SPECIFICALLY DISCLAIMS ANY AND ALL IMPLIED OR STATUTORY WARRANTIES INCLUDING WARRANTIES OF MERCHANTABILITY AND OF FITNESS FOR A PARTICULAR PURPOSE, TECHNICAL PERFORMANCE, AND NON-INFRINGEMENT. WITHOUT LIMITING THE FOREGOING, YOU AS CUSTOMER ACKNOWLEDGE THAT YOU HAVE NOT AND ARE NOT RELYING UPON ANY IMPLIED WARRANTY OF MERCHANTABILITY OR OF FITNESS FOR A PARTICULAR PURPOSE OR OTHERWISE, OR UPON ANY REPRESENTATION OR WARRANTY WHATSOEVER AS TO THE DELIVERABLES IN ANY REGARDS WHATSOEVER, AND ACKNOWLEDGE THAT CRED-IQ MAKES NO, AND HEREBY DISCLAIMS ANY, REPRESENTATION, WARRANTY OR GUARANTEE THAT THE PURCHASE, USE OR COMMERCIALIZATION OF ANY DELIVERABLES WILL BE USEFUL TO YOU OR FREE FROM INTERFERENCE. BY ACCEPTANCE OF THE DELIVERABLES, YOU HEREBY RELEASE CRED-IQ AND ITS AFFILIATES AND AGENTS FROM ALL CLAIMS, DAMAGES AND LIABILITY ARISING HEREUNDER.

Top 125 Markets for Apartment Investments: A CRED iQ Analysis

By

-

October 24, 2025

As of October 2025, the multifamily sector continues to show resilience amid evolving economic conditions, with strong origination volumes in key metropolitan statistical areas (MSAs). Drawing from CRED iQ’s proprietary rankings—based on total multifamily units from loans originated in 2025, total loan amounts, and aggregate property values—this blog explores the leading markets for apartment investments. We also spotlight recent multifamily loan comparables (comps) to provide granular insights into loan terms, property valuations, financial performance, and underwriting metrics. This analysis underscores opportunities in high-demand urban and suburban markets, where investor interest remains robust despite rising interest rates.

Market Rankings: Where Multifamily Investment is Thriving

CRED iQ’s rankings highlight the MSAs with the highest activity in multifamily lending for 2025. These metrics reflect not just origination volume but also the scale of underlying assets, offering a proxy for market depth and investor confidence. The top-ranked markets are dominated by large coastal and Sun Belt cities, where population growth, job markets, and rental demand drive investment.

Key observations from these rankings:

Coastal Dominance: New York and Los Angeles lead with massive scale, accounting for over $9 billion in combined originations and nearly 47,000 units. These markets benefit from dense populations and limited supply, supporting higher property values (e.g., New York’s aggregate value exceeds $12.8 billion).
Sun Belt Surge: Texas and Florida MSAs (Dallas, Miami, Houston) feature prominently, driven by migration trends and economic expansion. Dallas ranks fourth with 26,765 units, reflecting robust development in affordable and mid-tier apartments.
Midwest and West Coast Resilience: Chicago and Phoenix round out the top 10, with Phoenix’s lower property values per unit indicating opportunities in value-add investments.
Overall Trends: Total loan originations across the top 25 MSAs exceed $50 billion, with an average LTV implied around 60-65% based on comps (discussed below). Smaller markets like Raleigh (rank 19) and Nashville (rank 20) show emerging potential, with property values growing due to tech and entertainment sectors.

These rankings suggest investors should prioritize markets with high unit counts and origination volumes for liquidity and diversification, while monitoring interest rate impacts on cap rates.

Recent Multifamily Loan Comps: Terms, Values, Financials, and Underwriting

To complement the market rankings, we examined recent Fannie Mae multifamily loan comps from 2025. These are primarily fixed-rate, interest-only or amortizing balloon loans, with terms ranging from 60-120 months. They highlight conservative underwriting amid higher rates, with average debt service coverage ratios (DSCR) of 1.4-1.7x and loan-to-value (LTV) ratios around 60-65%. Properties are often Class A/B multifamily assets built or renovated post-2000, with strong occupancy (90%+). Below, we highlight five representative comps, focusing on key metrics.

The Esplanade at Riverwalk, located in Riverside, California within the Riverside-San Bernardino-Ontario MSA ranked 29th, secured a $110.5 million fixed-rate loan at 5.23 percent with a paying rate of 4.38 percent, featuring a 60-month term as an interest-only balloon structure and a yield maintenance prepayment penalty for 54 months. The property is valued at $170 million as of 2024, encompassing 588 units constructed in 2004. Its financials include an underwriting net cash flow debt service coverage ratio of 1.51x, an implied underwriting net cash flow debt yield of 7.5 percent, and monthly debt service of approximately $498,000, alongside a preceding year effective gross income of $15.6 million, net cash flow of $8.8 million, and 95 percent occupancy. Underwriting for this Tier 2 acquisition loan reflects a 65 percent loan-to-value ratio, with green certification under Green Globes emphasizing sustainability, and conservative metrics that account for California’s high-cost market while supported by strong cash flows from its leasehold interest.

The Corners Apartments at Brier Creek in Durham, North Carolina, part of the Raleigh-Cary MSA ranked 19th, obtained a $35 million fixed-rate loan at 4.45 percent with a paying rate of 3.91 percent, structured as a 60-month interest-only balloon with yield maintenance for 54 months. Valued at $71.1 million, the property includes 298 units built in 2022. Financial details show an underwriting net cash flow debt service coverage ratio of 2.08x and monthly debt service of about $134,000, with year-to-date effective gross income of $5.8 million, net cash flow of $3.3 million, and occupancy at 91.5 percent. The underwriting classifies it as a Tier 4 refinance with a 49.3 percent loan-to-value ratio, where the drop-eligible tier indicates flexibility, and the high debt service coverage ratio points to robust performance in North Carolina’s growing market, complemented by low restricted units at 6.71 percent for 50-60 percent area median income.

WaterCrest at City Center in Lenexa, Kansas, within the Kansas City MSA ranked 31st, features a $44.8 million fixed-rate loan at 5.14 percent with a paying rate of 4.59 percent, set for an 84-month term as an interest-only balloon with yield maintenance for 78 months. The property holds a $72.4 million value, comprising 306 units from 2014. Its financials encompass an underwriting net cash flow debt service coverage ratio of 1.70x and monthly debt service around $198,000, with preceding year effective gross income of $6.5 million, net cash flow of $4.0 million, and 93.4 percent occupancy. Underwriting positions it as a Tier 3 refinance with a 61.9 percent loan-to-value ratio, incorporating partial tax increment financing relief, and the metrics demonstrate balanced risk supported by high occupancy that bolsters stability in the Midwest.

Axis 3700 in Plano, Texas, situated in the Dallas-Fort Worth-Arlington MSA ranked fourth, carries a $43 million fixed-rate loan at 5.13 percent with a paying rate of 4.33 percent, structured over an 84-month term as an interest-only balloon with yield maintenance for 78 months. Valued at $68.2 million, it includes 300 units built in 2015. The financial profile features an underwriting net cash flow debt service coverage ratio of 1.48x and monthly debt service of roughly $190,000, along with preceding year effective gross income of $6.0 million, net cash flow of $3.3 million, and occupancy at 89.4 percent. As a Tier 2 acquisition with a 63.1 percent loan-to-value ratio and green certification, the underwriting aligns with Texas’s top-four market ranking through strong metrics, although the slightly lower occupancy highlights leasing dynamics specific to the area.

The Elysian at Post in Las Vegas, Nevada, within the Las Vegas-Paradise MSA ranked 26th, secured a $67.4 million fixed-rate loan at 4.83 percent with a paying rate of 4.04 percent, featuring a 60-month term as an interest-only balloon and yield maintenance for 54 months. The property is valued at $121.6 million, with 384 units constructed in 2024. Financials include an underwriting net cash flow debt service coverage ratio of 1.61x and monthly debt service of about $280,000, plus preceding year effective gross income of $8.3 million, net cash flow of $5.3 million, and 90.9 percent occupancy. Underwriting for this Tier 2 acquisition comes with a 55.4 percent loan-to-value ratio, where the new construction in a mid-ranked market underscores growth potential buffered by a conservative loan-to-value against volatility.

Common themes across these comps include fixed-rate structures with yield maintenance penalties (typically 54-78 months), favoring long-term holds. DSCRs average 1.6x, ensuring coverage amid rate hikes, while LTVs (55-65%) reflect prudent leverage. Green certifications appear in 40% of samples, tying into ESG trends. Financials show solid NCF yields (7-10%), with occupancies above 90% underscoring demand.

Key Takeaways and Outlook

CRED iQ’s 2025 rankings affirm the strength of major MSAs like New York, Los Angeles, and Dallas for multifamily investments, where high volumes signal liquidity and value appreciation. Recent loan comps reveal a market favoring conservative underwriting—lower LTVs, strong DSCRs, and green features—to mitigate risks. Investors eyeing acquisitions or refinances should focus on Sun Belt growth areas, monitoring occupancy and expense ratios for sustained performance. For deeper dives into specific deals or markets, contact CRED iQ for customized analytics.

About CRED iQ

CRED iQ is a market data provider that offers a robust suite of data and software solutions tailored for commercial real estate and finance professionals.

With over $2.3 trillion of CRE loans, CRED iQ delivers instant access to a comprehensive range of financial data and analytics for millions of properties in every market. CRED iQ’s data and analytical capabilities are instrumental in helping investors, lenders and brokers make informed and strategic decisions critical to their business.

THE DATA, INFORMATION AND/OR RELATED MATERAL (“DELIVERABLES”) IS BEING OFFERED AS-IS/WHERE-AS CONDITION. CRED-IQ MAKES NO REPRESENTATION OR WARRANTY AS TO QUALITY OR ACCURACY OF SUCH DELIVERABLES BEING PURCHASED, WHETHER EXPRESS OR IMPLIED, EITHER IN FACT OR BY OPERATION OF LAW, STATUTE, OR OTHERWISE, AND CRED-IQ SPECIFICALLY DISCLAIMS ANY AND ALL IMPLIED OR STATUTORY WARRANTIES INCLUDING WARRANTIES OF MERCHANTABILITY AND OF FITNESS FOR A PARTICULAR PURPOSE, TECHNICAL PERFORMANCE, AND NON-INFRINGEMENT. WITHOUT LIMITING THE FOREGOING, YOU AS CUSTOMER ACKNOWLEDGE THAT YOU HAVE NOT AND ARE NOT RELYING UPON ANY IMPLIED WARRANTY OF MERCHANTABILITY OR OF FITNESS FOR A PARTICULAR PURPOSE OR OTHERWISE, OR UPON ANY REPRESENTATION OR WARRANTY WHATSOEVER AS TO THE DELIVERABLES IN ANY REGARDS WHATSOEVER, AND ACKNOWLEDGE THAT CRED-IQ MAKES NO, AND HEREBY DISCLAIMS ANY, REPRESENTATION, WARRANTY OR GUARANTEE THAT THE PURCHASE, USE OR COMMERCIALIZATION OF ANY DELIVERABLES WILL BE USEFUL TO YOU OR FREE FROM INTERFERENCE. BY ACCEPTANCE OF THE DELIVERABLES, YOU HEREBY RELEASE CRED-IQ AND ITS AFFILIATES AND AGENTS FROM ALL CLAIMS, DAMAGES AND LIABILITY ARISING HEREUNDER.

To Err is Human, To Mod is Bank

By

-

October 17, 2025

Explore All Modified Loans

CRE Loan Modifications: Q3 Report

In the dynamic landscape of commercial real estate (CRE), loan modifications serve as a critical indicator of market stress, borrower resilience, and sector-specific challenges. As of the third quarter of 2025, data from CRED iQ reveals the ‘extend and pretend’ trend continues.

This analysis draws from a dataset encompassing modified loans totaling approximately $11.2 billion in ending balances, spanning July through September 2025. While modifications can range from maturity extensions to forbearance agreements, the trends highlight vulnerabilities in certain property types and a concentration among larger loan sizes. Below, we delve into these patterns, offering insights for investors, lenders, and market participants.

Overview of Recent Modification Activity

Before breaking down by property type and loan size, it’s worth noting the broader context. By category, maturity date extensions dominated, accounting for 101 loans and 67% of the loan balance, underscoring a prevalent strategy to defer repayments rather than restructure fundamentally.

Modifications by Property Type

Property types exhibit varied exposure to modifications, with hotels leading in balanced impact, while multifamily properties show higher loan counts. Here’s a breakdown:

Hotels: This sector tops the list with 53 loans modified, totaling $5.5 billion
Office: 36 loans amounting to $1.4 billion
Multifamily: Leading in volume with 55 loans, but a balance of $1.4 billion
Mixed Use: 20 loans for $891.9 million
Retail: Only 6 loans totaling $156.2 million
Self Storage: 3 loans for $150.0 million. This niche sector shows minimal modifications, aligning with its reputation for steady demand and lower volatility.
Industrial: 5 loans totaling $55.8 million

These figures illustrate a clear hierarchy: hospitality and traditional office spaces are bearing the brunt, while industrial and storage sectors remain outliers in stability.

Modifications by Loan Size

Shifting to loan size buckets, the data underscores a skew toward larger loans, which dominates the modified balance.

$100M+: 50 loans totaling $5.9 billion. This bucket alone accounts for over half the modified value, suggesting mega-loans are disproportionately affected.

$50M-$100M: 38 loans for $2.5 billion Mid-to-large loans here contribute significantly
$20M-$50M: 73 loans amounting to $2.3 billion The highest count but lower balance percentage implies a broader distribution of mid-sized modifications.
$10M-$20M: 24 loans for $670.4 million, showing a smaller impact
Less than $10M: 30 loans totaling $145.9 million. Minimal balance weight, indicating smaller loans are less frequently modified or resolved through other means.

Key Takeaways and Implications

The Q3 2025 data paints a picture of targeted distress in CRE, with hotels and offices leading modifications by property type, and larger loans ($50M+) comprising over 74% of the balance. Stay tuned to CRED iQ for deeper dives into CRE data and analytics. For custom insights or full datasets, visit our platform.

About CRED iQ

CRED iQ is a market data provider that offers a robust suite of data and software solutions tailored for commercial real estate and finance professionals.

With over $2.3 trillion of CRE loans, CRED iQ delivers instant access to a comprehensive range of financial data and analytics for millions of properties in every market. CRED iQ’s data and analytical capabilities are instrumental in helping investors, lenders and brokers make informed and strategic decisions critical to their business.

THE DATA, INFORMATION AND/OR RELATED MATERAL (“DELIVERABLES”) IS BEING OFFERED AS-IS/WHERE-AS CONDITION. CRED-IQ MAKES NO REPRESENTATION OR WARRANTY AS TO QUALITY OR ACCURACY OF SUCH DELIVERABLES BEING PURCHASED, WHETHER EXPRESS OR IMPLIED, EITHER IN FACT OR BY OPERATION OF LAW, STATUTE, OR OTHERWISE, AND CRED-IQ SPECIFICALLY DISCLAIMS ANY AND ALL IMPLIED OR STATUTORY WARRANTIES INCLUDING WARRANTIES OF MERCHANTABILITY AND OF FITNESS FOR A PARTICULAR PURPOSE, TECHNICAL PERFORMANCE, AND NON-INFRINGEMENT. WITHOUT LIMITING THE FOREGOING, YOU AS CUSTOMER ACKNOWLEDGE THAT YOU HAVE NOT AND ARE NOT RELYING UPON ANY IMPLIED WARRANTY OF MERCHANTABILITY OR OF FITNESS FOR A PARTICULAR PURPOSE OR OTHERWISE, OR UPON ANY REPRESENTATION OR WARRANTY WHATSOEVER AS TO THE DELIVERABLES IN ANY REGARDS WHATSOEVER, AND ACKNOWLEDGE THAT CRED-IQ MAKES NO, AND HEREBY DISCLAIMS ANY, REPRESENTATION, WARRANTY OR GUARANTEE THAT THE PURCHASE, USE OR COMMERCIALIZATION OF ANY DELIVERABLES WILL BE USEFUL TO YOU OR FREE FROM INTERFERENCE. BY ACCEPTANCE OF THE DELIVERABLES, YOU HEREBY RELEASE CRED-IQ AND ITS AFFILIATES AND AGENTS FROM ALL CLAIMS, DAMAGES AND LIABILITY ARISING HEREUNDER.

Announcing BMARK 2025-V18

By

-

October 14, 2025

A CRED iQ Preliminary Analysis

DATA HEREIN PROVIDED TO CRED IQ IS FROM A PRELIMINARY PROSPECTUS AND MAY BE AMENDED OR SUPPLEMENTED PRIOR TO TIME OF SALE

Deal Overview

The BMARK 2025-V18 CMBS deal is a new issuance securitization for the CMBS market, with a total pooled balance of $1.3 billion. The deal is jointly managed by prominent financial institutions including Goldman Sachs, Citigroup, Barclays, BMO, and Deutsche Bank. The deal is collateralized by 47 loans and secured by 88 properties across a variety of sectors, including multifamily, office, and hospitality. The strategic geographic distribution of these properties ensures balanced exposure across major markets. The deal’s weighted average loan-to-value (LTV) ratio of 60.4%, and the weighted average mortgage interest rate is 6.46%.

Key Metrics

The loan pool for BMARK 2025-V18 is structured to include a mix of amortizing and interest-only loans, with 5.7% of the mortgage pool having scheduled amortization. The remainder of the pool (94.3%) consists of interest-only payments throughout the loan term, offering investors a steady income stream. The pool boasts a weighted average debt service coverage ratio (DSCR) of 1.80. The weighted average net operating income (NOI) debt yield is 12.3%.

Geography & Property Types

A key strength of the BMARK 2025-V18 CMBS deal is its diverse property type distribution, which enhances portfolio resilience. Multifamily properties constitute 34.7% of the total balance, while office properties account for 24.9% of the balance. The geographic distribution of the properties across prime markets, including high-growth areas in New York City, Washington, DC and Houston.