News Archive

News

CRE Securitized Debt Update

May 13, 2025


Private-Label CMBS and CRE CLOs

One transaction priced last week:

  • GSTNE 2025-FL4, a $901.3 million CRE CLO sponsored by Greystone Senior Debt Fund. The managed transaction is comprised of 13 whole loans and 15 loan participations secured by 28 multifamily properties in 16 states.

Transaction flow was subdued in April after a strong first quarter of issuance due to President Trump’s tariff announcement. 

  • However, with volatility easing, issuers are bringing back sidelined deals and talking to borrowers about new ones. 
  • According to Commercial Mortgage Alert, several transactions are in the market, including another CRE CLO and multiple conduit and SASB offerings.

By the numbers: Year-to-date private-label CMBS and CRE CLO issuance totaled $52.5 billion, representing a 76% increase from the $29.8 billion recorded for same-period 2024. 

Senior Benchmark Spreads Tighten Sharply

  • Conduit AAA and A-S spreads were tighter by 11 bps and 15 bps to +92 and +135, respectively. YTD, they are wider by 17 bps and 30 bps.
  • Conduit AA and A spreads were unchanged at +205 and +265. YTD, they are wider by 70 bps and 100 bps, respectively.
  • Conduit BBB- spreads were unchanged at +615. YTD, they are wider by a significant 190 bps.
  • SASB AAA spreads were tighter by 10 bps to a range of +127 to +150, depending on property type. YTD, they are wider by 20 – 35 bps.
  • CRE CLO AAA and BBB- spreads were unchanged at +165 and +425, respectively.

Agency CMBS

  • Agency issuance totaled $2.3 billion last week, comprising $1.6 billion of Freddie K and Multi-PC transactions, $571.9 million of Fannie DUS, and $152.8 million of Ginnie Mae Project Loan transactions.
  • Agency issuance for the year totaled $46.7 billion, 32% higher than the $35.4 billion for the same period last year.
Contact Raj Aidasani (raidasani@crefc.org) with any questions.

Contact 

Raj Aidasani
Managing Director, Research
646.884.7566

News Archive

The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2025 CRE Finance Council. All rights reserved.
CRE Securitized Debt Update
May 13, 2025
One transaction priced last week.
More info...

News

Energy Star Program May be Shut Off

May 13, 2025

The Trump administration’s fiscal year 2026 “skinny” budget, released on May 2, proposes to cut funding for Energy Star, a voluntary, market-based program run by the Environmental Protection Agency (EPA).

As reported by the Real Estate Roundtable, Energy Star is commercial real estate’s “most relied-upon public-private partnership with the federal government.” 

  • In an April letter to EPA Administrator Lee Zeldin, real estate trade groups, including CREFC, noted that nearly 25% of U.S. commercial building floor space used Portfolio Manager, EPA’s secure, open-source, online software:

It is our industry’s standard business tool to measure how much energy a building uses and saves. Real estate assets that do more with less energy – as quantified, monetized, and recognized through Portfolio Manager and other ENERGY STAR offerings – are critical to achieve EPA’s pillars to “power the great American comeback.
Go deeper: According to the U.S. Green Building Council, eliminating Energy Star “would be incredibly shortsighted” given the energy savings that the program affords to U.S. individuals and companies:
Energy Star saves consumers and businesses more than $40 billion every year just by giving them clear information about the energy efficiency of products or buildings. And it does that at a cost of $32 million. So it is an incredible bang for the buck.
In an email to The Washington Post, an EPA spokesperson said that the agency is undergoing a reorganization that affects the Office of Air and Radiation, including the office that runs the Energy Star program. According to the EPA official:
With this action, EPA is delivering organizational improvements to the personnel structure that will directly benefit the American people and better advance the agency’s core mission, while Powering the Great American Comeback.
What’s next: The program’s future lies in the hands of Congressional appropriators over the next few months as the administration’s budget is reviewed and debated.

CREFC will continue to work with other trades to ensure that Energy Star remains a viable private-public partnership and continues to facilitate energy efficiency and enhance building performance.

Contact Sairah Burki (sburki@crefc.org) with any questions.

Contact 

Sairah Burki
Managing Director,
Head of Regulatory Affairs and Sustainability
703.201.4294
sburki@crefc.org

News Archive

The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2025 CRE Finance Council. All rights reserved.
Energy Star Program May be Shut Off
May 13, 2025
The Trump administration’s fiscal year 2026 “skinny” budget, released on May 2, proposes to cut funding for Energy Star, a voluntary, market-based program run by the Environmental Protection Agency (EPA).
More info...

News

Financial Regulations Update

May 13, 2025

The Trump administration continues to round out leadership in the financial regulatory landscape. 

Early last week, the Senate Banking Committee voted on party lines to recommend to the full Senate Federal Reserve Governor Michelle Bowman as the Fed Vice Chair for Supervision. 

  • The panel advanced Bowman's nomination in a 13-11 vote. According to American Banker, Bowman “is expected to sail through the full Senate vote relatively easily as both the industry and Republicans have stood behind her nomination.”

On May 9, President Donald Trump nominated Jonathan McKernan, a former Federal Deposit Insurance Corporation (FDIC) board member, to serve as Treasury’s undersecretary for domestic finance. 

  • McKernan's previous nomination to serve as director of the Consumer Financial Protection Board, which was submitted in February and approved by the Senate Banking Committee in March, has been withdrawn.
  • According to the Treasury Department’s statement, McKernan “has become an integral part of the Secretary’s senior team” while awaiting Senate confirmation for CFPB director. 

As reported in previous CREFC Policy and Capital Markets Briefings, Treasury Secretary Scott Bessent has stated that Treasury will play a key role in financial regulatory rulemaking. According to Politico, “if confirmed to the Treasury role, McKernan would be a central part of the Trump administration’s efforts to roll back and reshape regulations on the financial industry.” 

I think we want to safely and soundly expand the regulated financial system and get [smaller banks] on equal footing [with nonbanks]. I think that these capital levels that are predictable, are very important for that.
CREFC continues to closely monitor major financial regulatory developments. Please see here for our updated Regulatory Tracker.

Contact Sairah Burki (sburki@crefc.org) with any questions.

Contact 

Sairah Burki
Managing Director,
Head of Regulatory Affairs and Sustainability
703.201.4294
sburki@crefc.org

News Archive

The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2025 CRE Finance Council. All rights reserved.
Financial Regulations Update
May 13, 2025
The Trump administration continues to round out leadership in the financial regulatory landscape.
More info...

News

House Releases Tax Bill Text 

May 13, 2025

The House Ways and Means Committee on Monday released 400 pages of text detailing the tax portion of the reconciliation bill, titled “One Big Beautiful Bill.” 

  • The committee will hold a markup today at 2:30 pm, but it is likely the legislation will continue to evolve as it advances. 

Why it matters: This is the first draft of legislative text for the tax bill that broadly reauthorizes the 2017 Tax Cuts and Jobs Act, raises SALT caps, and delivers on a number of President Donald Trump’s tax priorities. 

  • Treasury also released an updated “X date” in mid-August for the debt ceiling, which adds pressure to lawmakers to pass the bill by July. 

By the numbers: Of interest to CREFC members, the following provisions represent neutral or lower tax liability, as written: 

  • $30,000 Individual SALT Cap: The bill raises the cap to $30,000 for all taxpayers with a phase-out for incomes above $400,000.
    • Raising the state and local tax deduction (SALT) limit from $10,000 is a red line for at least five blue state Republicans. A $30,000 cap was floated last week, which several members of the caucus rejected.
    • However, the Senate and other Republicans are opposed to too much relief for SALT.
  • No Business SALT Cap: There are no provisions to cap business state and local income or property taxes. 
  • 199A Passthrough: Qualified business income deduction increases to 23% from 20% and is made permanent.
  • No Carried Interest Rollback: President Trump had reiterated his push to close this “loophole” in a call last week with Speaker Mike Johnson (R-LA). The bill does not change carried interest treatment. 
  • Low-Income Housing Tax Credit (LIHTC) Boost: The bill would increase the state housing credit ceiling and lower the tax-exempt bond requirements, similar to the 2024 Wyden-Smith Bill.
  • Renews Opportunity Zones: The bill authorizes a new round of Opportunity Zone designations, starting on Jan. 1, 2027, and ending on Dec. 31, 2033. Some tweaks were made to various low-income definitions. 
  • Bonus Depreciation Made Permanent: Allows full expensing of qualifying property.
  • Interest Expense Deduction: Increases the cap on the deductibility of business interest expense for taxable years beginning after 2024 and before 2030 by allowing the EBITDA definition of taxable income.

Additional tax cuts: The TCJA provisions are largely made permanent with some minor adjustments to brackets. Lawmakers delivered on the White House’s priorities. 

  • No Top Tax Bracket Increase: In a call with Speaker Mike Johnson (R-LA), President Trump renewed his effort to increase the top tax bracket on earners taking home more than $2.5 million. This provision is not in the bill.
  • White House Individual Tax Priorities: The bill eliminates taxes on tips, overtime, auto loan interest, and adds an enhanced standard deduction for seniors (+$4,000). The provisions expire after four years, unless renewed. 
  • Factory Expensing: The bill allows 100% expensing of certain real property used for manufacturing. 
  • Tax Bracket and Standard Deduction Boost: All tax bracket amounts, except the top rate, will receive an upward inflation adjustment of 2%. The standard deduction increases by $2,000 for joint filers and $1,000 for individual filers. 
  • Child Tax Credit: Increases from $2,000 to $2,500. 
  • Estate Tax Exemption: Permanently increases to $15 million and is tied to inflation adjustments going forward. 
Yes, but: The bill also would raise taxes in some areas or eliminate some existing programs. 

  • IRA Tax Credits: The bill ends or sunsets a number of Biden Inflation Reduction Act (IRA) energy tax credits, including:
    • Terminating EV and clean vehicle credits and all residential credits, 
    • Phaseout for tech-neutral starting in 2029, ending entirely after 2031, and the same structure for nuclear. 
    • Full repeal of clean hydrogen production provisions.
  • Endowment Tax Increase: Endowment tax will be a tiered system, keeping a 1.4% rate for $500,000 per student and up to 21% for $2 million+ per student.
  • Executive Pay Deduction Limitations: Broadens existing limitations to a defined “controlled group,” including for tax-exempt entities.
What’s next: The Ways and Means Committee will mark up legislation over the next few days, and the House will address changes to Medicaid and other government spending programs concurrently.
 
The bottom line: Even now, the final bill is likely to evolve significantly as it progresses through Congress.
 
Contact David McCarthy (dmccarthy@crefc.org) with any questions. 

Contact 

David McCarthy
Managing Director,
Chief Lobbyist, Head of Legislative Affairs
202.448.0855
dmccarthy@crefc.org

News Archive

The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2025 CRE Finance Council. All rights reserved.
House Releases Tax Bill Text
May 13, 2025
The House Ways and Means Committee on Monday released 400 pages of text detailing the tax portion of the reconciliation bill, titled “One Big Beautiful Bill.”
More info...

News

Economy, the Fed, and Rates…

May 13, 2025




Economic Data
U.S.-China tariff deal alters trade landscape. After importers front-ran April tariff fears (widening March’s trade deficit to a record $140.5 billion), a 90-day deal announced May 12 sharply cuts:
 
  • U.S. tariffs on Chinese goods to 30% from 145% and 
  • China's tariffs on U.S. goods to 10% from 125%. 

Why it matters: This eases immediate concerns about severe supply disruptions and sparked a market rally. However, Fed's Goolsbee and Kugler warn significant economic impact and uncertainty persist even with the deal.

Inflation: Calm before the Storm. April CPI (due Tuesday) is expected at 0.3% m/m and 2.4% y/y, but BofA flags holds that "core goods inflation likely accelerated… owing in part to tariffs," and BNP Paribas sees core CPI peaking around 4.4 % by late 2026.

Labor Still Looks Sturdy…for Now. 

  • Payrolls added 177k in April, with the unemployment rate stable at 4.2%. 
  • Yet, this could reverse if tariffs lead to widespread layoffs. 
  • Chicago Fed's Goolsbee warns that even after Monday's truce, the tariff regime is "three-to-five times higher than before" and will still "make growth slower and prices rise."

Federal Reserve Policy

  • Stuck on hold, staring down stagflation. The FOMC kept the fed funds rate at 4.25 – 4.50 %, highlighting "rising stag-flationary risks." Fed Chair Powell emphasized patience, using the term "wait and see" 11 times during his press conference, noting: 

We don't feel like we need to be in a hurry. We feel like it's appropriate to be patient.
 
  • Dual-mandate dilemma. Powell says sustained tariffs could "generate a rise in inflation, a slowdown in growth, and an increase in unemployment," forcing the Fed to choose which target to wound.
  • No rate-cut chorus. A barrage of Fed speakers (Williams, Kugler, Barr, Cook) echoed: wait for data; keep inflation expectations anchored. Barr bluntly warns tariffs could deliver "persistent inflation… and higher unemployment."
  • Political heat rising. Trump's public jabs – Powell a "Fool" – renew debate over Fed independence, yet GOP lawmakers largely defend the chair, seeing him as a "stabilizing force."
  • Rate-cut odds repriced lower. Futures now embed two quarter-point cuts for 2025, down from four in April, as optimism about less aggressive tariffs and inflation persistence has scaled back bets on the extent of easing.
Treasury Yields
  • Yields jump as tariff deal reduces recession fears. The U.S.-China tariff agreement on May 12 spurred a Treasury selloff, boosting yields: the 10-year yield rose to 4.47% (highest in a month) and the 2-year yield climbed to 4.01%. This reflected reduced immediate recession fears and scaled-back expectations for aggressive Fed rate cuts, potentially moderating the earlier 'steepening twist' dynamic.
  • Volatility at the long end. While the acute April tariff shock has passed, the 30-year T-bond yield still rose to 4.90% on May 12 following the tariff news, reflecting ongoing sensitivity and repricing of long-term growth and inflation outlooks.
  • Term premium concerns persist despite temporary tariff relief. Yields on May 12 (two-year at 4.01%, 10-year at 4.47%, 30-year at 4.90%) still reflect elevated term premiums. While the 90-day tariff deal offers a reprieve, the underlying uncertainty about future trade policy and its inflationary impact makes investors demand extra compensation for holding long-dated Treasuries. As Sam Goldfarb at The Wall Street Journal notes, 
One major reason is uncertainty about inflation. While investors think that inflation and interest rates will subside in the coming years, Trump's mercurial approach to trade policy has made them less sure about those forecasts.
 
  • 5% Line in the Sand. BofA's Michael Hartnett argues that a durable move above 5% on Treasuries would "jeopardize the deficit-funding machine," likely forcing tariff roll-backs; foreign investors already hold $8.5 trillion of Treasuries, and CBO chief Swagel calls recent volatility a possible "tipping point" for their appetite.
Implications for CRE Finance
  • Stagflationary pressures ease but don't vanish, impacting CRE. The May 12 U.S.-China tariff deal lessens immediate stagflation fears. However, Fed officials warn of a continued 'stagflationary impulse' from still high overall tariff levels, predicting slower growth and higher prices than if tariffs were lower. For CRE, the risk of inflation (potentially supporting rents in some sectors), coupled with slower growth (undermining demand/occupancy), is reduced but not eliminated.
  • Retail faces multiple headwinds. The combination of potential inventory shortages, consumer spending constraints, and tariff pressures creates a challenging environment for retail properties. Richmond Fed President Barkin's observation that "consumers are about tapped out" suggests retail tenants may face margin compression. If the 90-day tariff pause sticks, imported-goods availability could stabilize, but retailers warn profitability is still squeezed by a ~15 % "effective" tariff.
  • Capital markets volatility. Continued volatility in borrowing costs is likely as markets digest the temporary nature of the deal and await clarity on long-term trade policy. Hedging costs and loan pricing will remain sensitive to this evolving outlook and the still-present 'uncertainty' highlighted by Fed officials and market participants.
Go deeper: You can download CREFC's one-page MarketMetrics, which includes statistics covering the economy and the CRE debt capital markets, here.

Contact Raj Aidasani (raidasani@crefc.org) with any questions.
 

Contact 

Raj Aidasani
Managing Director, Research
646.884.7566

News Archive

The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2025 CRE Finance Council. All rights reserved.
Economy, the Fed, and Rates…
May 13, 2025
U.S.-China tariff deal alters trade landscape.
More info...

News

Treasury Secretary Testifies to the House Financial Services Committee

May 13, 2025

U.S. Treasury Secretary Scott Bessent offered his first annual testimony to Congress last week before the House Financial Services Committee. In a lively hearing, lawmakers debated a broad range of topics, including tariffs and cryptocurrency.

The big picture: 

  • Republicans, led by Chairman French Hill (R-AR), praised Bessent’s “America First” strategy that aims to bring jobs back to the U.S. through tariffs, tax cuts, and efforts to reduce red tape. They called for tough stances on China, stricter rules on American investments going abroad, and reforms to global institutions like the International Monetary Fund and the World Bank.
  • Democrats led by Rep. Maxine Waters (D-CA) slammed the administration’s tariffs, blaming them for shrinking the economy and driving up prices. Rep. Nydia Velázquez (D-NY) demanded more transparency on trade negotiations. Bessent responded, saying:

We’re negotiating with 18 countries, but I can’t name them yet, as it would not benefit the United States and would compromise ongoing negotiations.
Basel III Endgame bank capital rules were also a topic of discussion. Secretary Bessent agreed with Rep. Andy Barr (R-KY) that current capital rules are too strict for small banking institutions.

  • Bessent promised changes that would level the playing field for U.S. financial institutions and signaled he would take significant industry feedback to inform any re-written endgame proposal: 
I think we want to safely and soundly expand the regulated financial system and get smaller banks on equal footing with nonbanks … I think that these capital levels that are predictable, are very important for that.
Regulator Appointments: When asked about the long delay in naming a new FDIC Chair, Bessent said acting chair Travis Hill is doing a “solid job” and a permanent pick is under consideration.

Digital assets: Bessent said the U.S. should be the “premier destination for digital assets,” noting that Treasury’s plan submitted to President Trump outlines how financial institutions can participate in the digital asset space.

Bottom line: Bessent backed President Donald Trump’s approach to China, and the White House’s business-friendly policies and efforts on digital assets while addressing sharp criticism from Democrats.

Contact James Montfort (JMontfort@crefc.org) with any questions.

Contact  

James Montfort
Manager,
Government Relations
202.448.0857
jmontfort@crefc.org

News Archive

The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2025 CRE Finance Council. All rights reserved.
Treasury Secretary Testifies to the House Financial Services Committee
May 13, 2025
U.S. Treasury Secretary Scott Bessent offered his first annual testimony to Congress last week before the House Financial Services Committee.
More info...

News

NCREIF - CREFC Debt Fund Aggregate Announcement

May 13, 2025

As you know, we have been producing the NCREIF / CREFC Open-end Debt Fund Aggregate for approximately two years. Today, the Aggregate includes funds with sharply different styles and strategies of debt investing, making it useful for understanding the overall risk and return characteristics of the open-end debt fund market. Currently, the Aggregate is too varied to serve as an index or a benchmarking tool. Nevertheless, it represents a crucial first step in developing a more targeted index of funds operating within a specific style or strategy.

Introducing Open-End Debt Fund Investment Styles and Criteria

A task force and the data contributing managers have been working diligently for the past few years to create index parameters / fund inclusion criteria, for three different styles of open-end debt fund investment. 
 
These parameters will be used to categorize the funds included in the Aggregate into their respective style indices. The Aggregate will continue to be produced and will include open-end debt funds regardless of the fund’s style or strategy. In addition, we anticipate creating the first focused open-end debt fund index later this year. 

We are seeking NCREIF and CREFC member feedback on both the naming of the three style indices and the related inclusion criteria parameters.

In addition to developing the inclusion criteria, getting the names right is critical as these will become the official names of the NCREIF / CREFC Open-End Debt Fund Index products. Please keep in mind that the proposed fund index inclusion criteria will not be perfect from the start, but we must start somewhere, and this is it. Once the first debt fund style index is launched, we will monitor it, continue to seek and receive feedback from participants, make changes as necessary, and look forward to more open-end debt funds being created in order to improve and expand the suite of open-end debt fund indices. 
 
Attached via the link below is a document that outlines the full proposal. We urge you to review and provide feedback to us on our progress thus far as this is the most optimal method for ensuring its success. 
 

 

Contact 

Lisa Pendergast
President & CEO
646.884.7570
lpendergast@crefc.org

News Archive

The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2025 CRE Finance Council. All rights reserved.
NCREIF-CREFC Debt Fund Aggregate Announcement
May 13, 2025
We are seeking NCREIF and CREFC member feedback on both the naming of the three style indices and the related inclusion criteria parameters.
More info...

News

Recap: Senate Hearing Focuses on Insurance Costs, Availability 

May 6, 2025

The Senate Banking Committee held a May 1 hearing titled Examining Insurance Markets and the Role of Mitigation Policies with the following witnesses:

  • Robert Gordon, Senior Vice President, Policy, Research & International, American Property Casualty Insurance Association (APCIA);
  • Alex Epstein, President and Founder, Center for Industrial Progress; 
  • Michael Newman, General Counsel, Insurance Institute for Business and Home Safety (IBHS); and 
  • Jessica Pyska, Supervisor, County of Lake, California 

During the hearing, senators and witnesses cited several underlying drivers of the higher cost and lower availability of property insurance, including:

  • Demographic shifts to areas with higher climate risk,
  • Inflation, particularly related to building materials;
  • Legal system abuse, and 
  • Regulatory limitations.

They also raised concerns about discriminatory practices, market competition, and how federal policy shifts, including tariffs, affect cost volatility across states.

Disaster mitigation, infrastructure resilience, and forest management featured prominently as strategies to lower long-term insurance costs. 

  • Committee members and witnesses engaged in detailed discussions about property resilience efforts. Ms. Pyska affirmed the importance of hardening homes and discussed Lake County's attempts to "cluster harden" entire communities with wraparound fire breaks to ensure the entire community is resilient.
  • Sen. Warner (D-VA) noted the U.S. Chamber of Commerce suggested that every $1 invested in resilience and disaster preparation reduces a community's economic costs by $7.
  • However, it is not clear whether resilience efforts have thus far resulted in lower insurance costs for property owners.
Multiple members criticized cuts to federal programs like Building Resilient Infrastructure and Communities Grants (BRIC) and other grants provided by the Federal Emergency Management Agency (FEMA). 
  • Sen. Andy Kim (D-NJ) raised concerns about efforts to privatize or eliminate the National Flood Insurance Program (NFIP), questioning whether the private sector is equipped to absorb these costs while keeping insurance premiums low. 
  • APCIA’s Gordon explained that the NFIP, which covers 4.7 million households, charges significantly less than the private market. He also stressed the important role NFIP plays in encouraging community floodplain management and developing flood maps, and building codes. 
  • To listen to a podcast in which CREFC’s Sairah Burki and David McCarthy share their thoughts about the NFIP with The Commercial Property Executive’s Therese Fitzgerald, please click here.
CREFC’s Property & Resilience Committee has closely covered CRE insurance issues over the past few years via presentations from experts, webinars, and panels at conferences. Please see here for more information and stay tuned for forthcoming webinars. 

Contact Sairah Burki (sburki@crefc.org) with any questions.

Contact 

Sairah Burki
Managing Director,
Head of Regulatory Affairs and Sustainability
703.201.4294
sburki@crefc.org

News Archive

The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2025 CRE Finance Council. All rights reserved.
Recap: Senate Hearing Focuses on Insurance Costs, Availability
May 06, 2025
The Senate Banking Committee held a May 1 hearing titled Examining Insurance Markets and the Role of Mitigation Policies.
More info...

News

CRE Securitized Debt Update

May 6, 2025



Private-Label CMBS and CRE CLOs
Three transactions totaling $2.3 billion priced last week:

  • INCREF 2025-FL1, a $1.2 billion CRE CLO sponsored by Invesco Commercial Real Estate Finance Trust. The managed transaction is comprised of 28 loans secured by 98 properties. The pool is split between multifamily (54.9%) and industrial (45.1%) properties.
  • BMO 2025-5C10, a $628 million conduit backed by 34 five-year loans secured by 67 properties across 20 states from BMO, Citi, Deutsche, Starwood, Goldman, Greystone, SocGen, Zions, and UBS.
  • BAY 2025-LIVN, a $430 million SASB backed by a floating-rate, five-year loan (at full extension) to finance PCCP’s acquisition of 75 multifamily properties, totaling 1,759 units, in the San Francisco Bay Area.

By the numbers: Year-to-date private-label CMBS and CRE CLO issuance totaled $51.4 billion, representing an 84% increase from the $27.9 billion recorded for the same period in 2024.

Spreads Largely Steady

  • Conduit AAA and A-S spreads were unchanged at +103 and +150. YTD, they have widened by 28 bps and 45 bps, respectively.
  • Conduit AA and A spreads were unchanged at +205 and +265. YTD, they have widened by 70 bps and 100 bps, respectively.
  • Conduit BBB- spreads were unchanged at +615. YTD, they have widened by 190 bps.
  • SASB AAA spreads were tighter by 5 bps to a range of +137 to +160, depending on property type. YTD, they have widened by 30 – 45 bps.
  • CRE CLO AAA spreads were unchanged at +175, while BBB- spreads were tighter by 10 bps at +425.

Agency CMBS

  • Agency issuance totaled $1.3 billion last week, comprising $904.4 million of Fannie DUS, $195.4 million in Freddie Multi-PCs, and $164.9 million of Ginnie transactions.
  • Agency issuance for the year totaled $44.1 billion, 30% higher than the $34 billion for the same period last year.
Contact Raj Aidasani (raidasani@crefc.org) with any questions.

Contact 

Raj Aidasani
Managing Director, Research
646.884.7566

News Archive

The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2025 CRE Finance Council. All rights reserved.
CRE Securitized Debt Update
May 06, 2025
Three transactions totaling $2.3 billion priced last week.
More info...

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