The CRED iQ research team focused upon the underwriting of the latest market transactions. We wanted to understand the key loan metrics across this universe to get a real-time sense of the current environment and lending trends.
CRED iQ analyzed underwriting metrics for the latest new issue CMBS conduit deals issued since our previous report in October. We reviewed 819 properties associated with 284 new loans totaling just over $7 billion in loan originations that have been packaged into CMBS securitizations. Our analysis examined cap rates, interest rates, and debt yields. We further broke down these statistics by property type.
Cap Rate Analysis
Office cap rates ranged from 4.60% to 10.50% with an average of 7.40%, which is up from 7.16% in Q3 2024. Multifamily cap rates ranged from 3.90% to 7.60% with an average of 5.90%, which is up from an average of 5.77% in Q3 2024. Retail cap rates ranged from 5.00% to 9.10% with an average of 6.70%, which is up from an average of 6.45% in Q3 2024.
Cap Rates for industrial assets ranged from 5.20% to 7.70% with an average of 6.40%, which is up from 6.24% the previous quarter. Self storage cap rates ranged from 5.30% to 7.60% with an average of 6.20%, which is up from an average of 5.86% in Q3 2024. Hotel cap rates ranged from 3.30% to 10.60% with an average of 7.30%, which is down from an average of 7.80% in Q3 2024. The hotel segment was the only one with a downward trend on average cap rates.

Interest Rate Analysis
Office interest rates ranged from 3.40% to 7.90% with an average of 6.70%, which is up from 6.90% in Q3 2024. Interest rates for multifamily loans in CMBS deals ranged from 5.20% to 7.70% with an average of 6.60%, which is up slightly from an average of 6.55% in the prior quarter. Retail interest rates ranged from 3.70% to 7.90% with an average of 6.50%, which is down from an average of 6.58% in Q3 2024.
Average interest rates for industrial assets ranged from 3.50% to 7.90% with an average of 6.40%, which is slightly down from 6.45% the previous quarter. Self storage interest rates ranged from 5.50% to 7.20% with an average of 6.30%, which is down slightly from an average of 6.34% in Q3 2024. Hotel rates ranged from 5.50% to 8.00% with an average of 6.90%, which is down from an average of 7.00% in Q3 2024.
Debt Yield Analysis
Debt yield trends for offices ranged from 8.50% to 17.10% with an average of 13.0%, which is down from 13.2% in Q3 2024. Average debt yields for multifamily loans in CMBS deals ranged from 7.50% to 14.40% with an average of 9.50%, which is down from an average of 9.93% in the prior quarter. Retail debt yields ranged from 8.30% to 17.80% with an average of 11.60%, which is up slightly from an average of 11.55% in Q3 2024.
Comparing loan volumes to our October report, the self storage segment saw a 254% increase in properties –the highest of all property types. Hospitality came in second with a 147% increase. Meanwhile multifamily and office notched the greatest decrease in property/loan volumes at -55% and -50% respectively. From a deal balance perspective, self storage saw the greatest increase since October (+103%), while hospitality (-29%) and office (-27%) logged the biggest decreases.
About CRED iQ
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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.
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