Downtown Boston office and lab assets show lack of exposure to the CMBS market

Allocated balance totals vs CMBS loans maturing 2024 to 2029
  • Boston’s strong and active debt market, supported by local, region, and national banks, has enabled buyer and operators to leverage capital that is not tied commercial mortgage-backed securities (CMBS).
  • Unlike other major office markets like Chicago and Manhattan, Boston has minimal exposure to a CMBS markets that has supplied fixed rate loans before 2021. Only 15 CMBS loans are maturing over the next decade totaling a $951 million balance.
  • While this helps minimize Boston’s exposure to mortgage securities that are traded, banks and other debt sources are still exposed to risk associated with decreasing rents and occupancy levels.

Source: Trepp (CMBS Fixed Rate)
Note: Loans originated before 2021, excludes Cambridge and suburbs.

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