Single-asset, single-borrower (SASB) CMBS borrowing remains on the rise, according to a new Fitch Ratings report.
The market has been "expanding in scale and scope as growing complexity demand disciplined credit selectivity," the firm said.
SASB issuance reached $91.1 billion in 2025. That was up nearly 30% from 2024 and accounted for 72.5% of total U.S. CMBS volume. Year-to-date in May 2026, the CMBS volume rose to about 78.5% of the total. The average transaction size has increased since 2023, with multi-billion-dollar institutional financing driving the growing size.
The median transaction size has been stable, showing that the market is expanding at both ends.
"Large trophy assets are pushing issuance volume higher, while smaller deals that were historically absent from the SASB channel are also entering the market," Fitch wrote.
Deal counts, by number of transactions, not total dollar volume, have tripled. Transactions that are under $250 million have expanded the base of borrowers, including both mid-market operators and smaller asset owners.
The ranking of issuance was office, hotel, retail, industrial and multifamily. Data centers are becoming far more important and were four of the largest 10 deals since 2024, given growing investor and issuer comfort with digital infrastructure collateral.
The greatest credit distress came from office, accounting for the majority of downgrades and negative ratings.
All this makes sense in the context of other reports. CRED iQ warned that commercial real estate distress could continue to climb well into 2026, possibly reaching as high as 15% by the end of the year. CRED iQ calculated in February that the percentage of specially serviced loans had more than doubled from 4.47% to 11.10%. Delinquencies jumped from 2.93% to 9.40%. Total distress across the sector rose from 4.83% in July 2022 to 11.98% in January 2026—a 148% increase over 43 months.
Investment sales volume for the office market climbed 41% year-over-year to $62.7 billion in 2025, a sharp rebound from the $39 billion recorded in 2023. Lending activity is also returning. Office originations surged 84% year-over-year, driven largely by SASB and CMBS markets, while debt funds and life companies expanded their presence.
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