KBRA Releases the July 2026 issue of CMBS Trend Watch.
Following a very strong June for issuance, the commercial real estate (CRE) securitization market experienced a summer seasonal slowdown in July. A total of 10 private label CMBS conduit and single-borrower (SB) transactions priced during the month, down from 18 in June. SB deals continue to dominate issuance, accounting for eight of the transactions. Despite the slower monthly pace, year-to-date (YTD) private label CMBS issuance reached $76.7 billion through July, compared with $71.7 billion during the same period in 2025, representing a 6.9% year-over-year (YoY) increase.
CRE collateralized loan obligation (CLO) issuance remained active in July, with four pricing during the month. Through July 2026, 30 CRE CLOs had priced, up from 18 during the same period in 2025, contributing to a 62.8% YoY increase in issuance volume.
Based on our current visibility, issuance is expected to rebound in August, with as many as 14 CMBS transactions potentially launching, including nine SB and five conduit deals (including one multifamily-only conduit), as well as three CRE CLOs.
In July, KBRA published pre-sales for six deals ($4.7 billion), including four CRE CLOs ($3.3 billion), one SB ($950 million), and one single-family rental (SFR) ($482.5 million). July’s surveillance activity included rating reviews of 672 securities. Of the 672 ratings, 579 were affirmed (86.2%), 84 were downgraded (12.5%), and nine were upgraded (1.3%).
This month’s edition also highlights recent KBRA research publications that cover various topical issues.
Click here to view the report.
Recent Publications
- CMBS Trend Watch: June 2026
- CMBS Loan Performance Trends: July 2026
- Data Centers in Focus: Credit Considerations Across Asset Classes Webinar Recap
- Time Is Not Free: Loan Modifications in SASB CMBS 2.0
- KBRA CMBS Loss Compendium Update: June 2026
- 21st Century ROAD to Housing Act Becomes Law: SFR Implications
- Servicer Holdbacks and Impact on CMBS Waterfalls: WFCM 2015-C26 Case Study
- CRE CLO Loan Default and Loss Study: Rising Defaults and Modifications Amid Limited Losses
About KBRA
KBRA, one of the major credit rating agencies, is registered in the U.S., EU, and the UK. KBRA is recognized as a Qualified Rating Agency in Taiwan, and is also a Designated Rating Organization for structured finance ratings in Canada. As a full-service credit rating agency, investors can use KBRA ratings for regulatory capital purposes in multiple jurisdictions.
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