- Private-label CMBS issuance hit $37.55B in Q1 2025, a 21.7% increase from Q4 2024, and more than double the volume from Q1 2024.
- Single-asset single-borrower (SASB) deals dominated, comprising over 72% of issuance as investor appetite for these structures grew.
- Conduit CMBS and CRE CLOs also saw notable growth, although spread volatility and complex deal structures may temper future activity.
Issuance Rebounds
According to Globe St, the CMBS market showed new signs of life in Q1 2025, with issuance reaching $37.55B across 40 deals. This strong start signals a resurgence of momentum in the sector after a volatile 2024.
SASB Dominates
The resurgence in CMBS is being driven largely by single-asset single-borrower (SASB) deals, which made up 72.12% of total issuance at $27.08B across 30 deals. That’s up from a 68.29% share in Q1 2024, highlighting growing investor confidence in simpler, tailor-made transactions that provide better clarity on asset performance and credit quality.
Get Smarter about what matters in CRE
Stay ahead of trends in commercial real estate with CRE Daily – the free newsletter delivering everything you need to start your day in just 5-minutes
Conduits And CLOs Pick Up Steam
Conduit CMBS issuance nearly doubled year-over-year to $10.47B across 12 deals. CRE CLO issuance jumped to $8.24B from $1.55B in Q1 2024, signaling a broad resurgence in CRE capital markets.
Volatility Looms
Despite the optimism, spreads tell a more cautious story. Benchmark conduit spreads widened from 76.5 to 90.5 basis points in Q1 as geopolitical and economic concerns rattled markets. Trepp warns that these headwinds could limit further issuance gains in the months ahead.
Complex Deals, Fierce Competition
Conduit deals are becoming more intricate. While the average number of contributing lenders dipped slightly to 7.17 per deal, some transactions required as many as 13, complicating underwriting and execution. Wells Fargo led the lender pack with an 18.42% market share, while its securities division handled the most bookrunning activity at $7.19B.
Why It Matters
The resurgence in CMBS issuance reflects growing confidence in credit quality and market structure, especially for SASB deals. With rising spreads and complex deals, future issuance depends on how well the market weathers macroeconomic uncertainty.
What’s Next
Sustaining this momentum will depend on continued investor appetite, stable interest rates, and the ability to streamline increasingly complex conduit deals. For now, the market is trending upward—albeit with a cautious eye on the road ahead.
