- Trepp tracked $10.4B of cash-out refinance volume in 2025 and another $7B through July 2026.
- Equity extraction averaged about 16% of senior loan balances in 2025 and 2026, versus 23% to 25% in 2021 and 2022.
- The recovery is selective, with stronger properties gaining proceeds while pressured assets still require borrower cash at refinancing.
According to Globe St, cash-out CMBS refinancing has returned in meaningful volume, but the proceeds look different from the last market peak. Trepp’s analysis shows lenders are again funding transactions that return equity to owners. Borrowers are taking substantially less cash out than they did during the low-rate years.
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
Cash-Out CMBS Refinancing Rebounds
Trepp reviewed sources-and-uses data for the 15 largest loans in each conduit CMBS transaction. Those loans typically represent 60% to 70% of a pool’s aggregate principal balance. The sample showed $10.4B of cash-out refinance volume in 2025. Another $7B was recorded through July 2026.
That compares with $9.4B of cash-in refinancing in 2025 and $4.2B through July 2026. The rebound signals that qualifying properties can again generate proceeds for owners. It does not mean every borrower has regained access to peak-cycle leverage.
The Details
The cycle turned sharply after 2022. Trepp’s sample recorded $7.1B of cash-out refinancing in 2021 and $7.6B in 2022. Cash-in volume then nearly tripled to $6.2B in 2023 as values fell and borrowing costs rose. It climbed to $10.3B in 2024.
Cash-out activity recovered to $9.6B that year, then moved ahead of cash-in volume in 2025. The rebound also arrives as conduit CMBS issuance recovers and lenders compete harder for qualifying deals. Stronger assets can now attract financing without requiring the owner to add as much new equity.
Smaller Equity Checks Define the Recovery
Borrowers are extracting far less equity than they did at the peak. Trepp said cash-out proceeds equaled about 23% of senior loan balances in 2021 and 25% in 2022. That share fell to 16% in 2023 and 14% in 2024. It recovered only to about 16% in both 2025 and 2026.
Lower property values, higher debt-service costs, and lender caution still cap proceeds. Trepp’s Stephen Buschbom said the market effectively has two refinancing tracks. Pressured properties often need cash in, while stronger properties can again support cash out.
Why It Matters
The smaller extraction share points to a more disciplined capital stack. Subordinate debt was more common during the prior peak and supported larger financing packages. Today, mezzanine or similar capital is more likely to serve as rescue financing or carry a control-oriented structure.
That leaves senior lenders with more reason to preserve debt-service coverage and limit proceeds. The return of cash-out transactions is still constructive for CRE capital markets. It shows lenders are competing again, but primarily for assets with durable occupancy, stable income, and defensible valuations.
What’s Next
Cash-in refinancing remains a major part of the market, so the recovery is not broad-based. Many borrowers still face valuation gaps, higher debt costs, or cash flow that leaves little room for error. The key indicator is whether more properties can migrate from cash-in to cash-out structures without a return to aggressive leverage. For now, the market is reopening selectively rather than recreating 2021 and 2022 lending conditions.
