- New York Office sector saw over $14B in CMBS loans for prime assets in 2025.
- CMBS debt issuance nationwide soared to $115.2B, with NYC leading activity.
- Competition among lenders intensified, especially for trophy Manhattan towers.
- Office loan delinquencies in New York are lower than the national average.
Wall Street Renews Office Appetite
New York Office properties have captured renewed interest from Wall Street, with investors and lenders piling back into the sector in 2025, reports Bisnow. Manhattan’s trophy buildings led the surge, attracting billions in newly originated CMBS debt as the office market rebounded and lender confidence returned.
Major Loan Activity in 2025
In the first 11 months of 2025, CMBS lenders originated $115.2B in new debt—the highest since 2007. New York Office assets accounted for $14B of loans out of $28B in total NYC CMBS debt, led by marquee transactions for The Spiral ($2.85B), MetLife Building ($1.5B), and 11 Madison ($1.4B). Overall, about two-thirds of NYC’s CMBS issuance went into the office sector, reflecting robust demand for top-tier assets.
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Trophy Assets Drive Competition
Lenders are targeting top-tier Manhattan buildings, offering aggressive terms and attracting bids from banks, insurers, and CMBS platforms. A $1.1B refinancing at 3 Bryant Park received over 100 lender bids, highlighting strong demand for New York office loans. This surge in appetite has also been supported by a rebound in SASB loan issuance, as lenders show renewed confidence in stabilized, trophy-grade assets amid broader capital markets recovery.
Delinquency and Market Outlook
New York’s CMBS office delinquency rate fell to 5.8%, outperforming the national average but still above pre-pandemic levels. Despite sector challenges, borrowers can secure favorable refinancing through 2026, especially in New York’s trophy office segment. CMBS remains the go-to for large office deals, with industry leaders expecting broader lending activity to return in 2026..
