Are CMBS Loans Fixed-Rate?

Fixed vs. Variable-Rate CMBS Loans

The vast majority of CMBS loans are fixed-rate, however, floating-rate CMBS loans do exist. Despite that, variable-rate CMBS loans are considerably less popular than their fixed-rate counterparts, due to the fact that these loans have historically had particularly high default rates. In general, fixed-rate CMBS loans are a safer bet for both investors and borrowers; borrowers know that their rates won’t suddenly rise with a fluctuation in the markets, and CMBS investors can rest assured that the borrower is significantly less likely to default.


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