- Private-label CMBS issuance is set to exceed $100B in 2024, a significant recovery from 2023’s low and surpassing the post-Great Financial Crisis average of $84.2B.
- Single-borrower deals made up 64% of total issuance volume through Q3, with strong demand and tightening spreads pointing to renewed investor confidence.
- Recent notable transactions include a $475M financing by Ares Management and a $3.4B deal by Tishman Speyer and Henry Crown & Co.
As reported by GlobeSt, the pace of private-label CMBS issuance is set to surpass the 2013–2021 average of $84.2B this year—a sharp rebound after the weakest year for CMBS since 2011 in 2023.
Major Momentum
With early indications of strong deal flow in October, totaling $12.6B in launched or pending deals, the market appears to be gaining momentum. Single-borrower transactions have been the key driver, accounting for 64% of the total volume through Q3, the report noted.
While the current figures are far from the peak of 2005–2007, when annual issuance reached $230.5B, this year’s performance should exceed the post-Great Financial Crisis average, according to Jodka. Recent weeks have seen a surge of significant single-borrower CMBS deals.
Notable Transactions
A key example of this momentum came from Ares Management (ARES), which secured $475M in financing for a 4.8 MSF industrial portfolio spread across 16 markets in 12 states.
A syndicate led by J.P. Morgan (JPM) arranged the floating-rate CMBS financing, with Morgan Stanley (MS) and Natixis Corporate & Investment Banking as joint book-runners. Cushman & Wakefield’s (CWK) Equity, Debt & Structured Finance team, led by Rob Rubano, Gideon Gil, Brian Share, Joe Lieske, Ernesto Sanchez, and Lars Weston, acted as the exclusive advisor.
“The SASB market continues to be one of the bright spots in debt capital markets in 2024, and this refinancing saw strong bond-buyer demand and competitive tightening spreads,” said Brian Share.
Another significant deal was announced last week by real estate company Tishman Speyer and investment firm Henry Crown & Co., which are raising $3.4B through a single-borrower CMBS transaction backed by Rockefeller Center’s office and retail spaces.
This deal ranks among the top five single-asset, single-borrower transactions since 2014 and is the largest since 2021. Previously, the $4.65B securitization involving 560 Extended Stay America hotels held that title.
Earlier in October, LBA Logistics also entered the CMBS market, securing $577.63M in financing for its 25-property industrial portfolio covering over seven million square feet. JLL facilitated the loan with joint book-runners led by Bank of America (BAC), J.P. Morgan, and Wells Fargo (WFC).
The five-year loan term features a floating rate with extensions, and the final pricing was set at 195 bps over the Secured Overnight Financing Rate.
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Looking Ahead
The resurgence of private-label CMBS issuance reflects broader trends in the debt capital markets, where single-borrower deals have become a preferred structure due to their simplicity and appeal to investors.
With strong demand and tightening spreads, the market for these transactions is expected to remain robust through the end of the year, pushing total issuance beyond $100B for the first time in years.
