Commercial mortgage-backed securities lenders securitized $14.93 billion of loans against industrial properties through August this year, a pace that puts 2026 on track to top the $18.56 billion of industrial loans securitized in all of last year. The shift matters because industrial has grown from 14.55% of total CMBS issuance in 2025 to 17.01% of this year's $87.75 billion in total issuance, according to Trepp. That rising share signals stronger lender appetite for industrial collateral even as overall CMBS volume has declined from last year's $127.56 billion.
The composition of this year's industrial issuance is heavily concentrated in single-asset, single-borrower deals. SASB transactions accounted for $13.24 billion of industrial CMBS issuance through August, while only $1.69 billion of industrial loans were securitized through conduit deals. SASB deals typically finance a single large property or portfolio for one borrower, whereas conduit deals pool smaller loans secured by individual properties. The dominance of SASB issuance means the industrial CMBS market is being driven by large portfolio financings rather than broad-based lending across smaller assets.
The scale of those portfolio financings is visible in one of the year's largest SASB transactions. MTN Commercial Mortgage Trust 2026-LPFX was backed by a $1.28 billion loan that was part of a $1.62 billion financing secured by 90 industrial properties totaling 19.2 million square feet. The financing replaced a $1.4 billion loan securitized in MTN 2022-LPFL. The collateral pool expanded by eight properties since the 2022 securitization, while its appraised value increased from $2.1 billion to $2.35 billion. The new debt carries a loan-to-value ratio of 68.9%, up from 66.8% on the 2022 financing.
Across the broader industrial CMBS market, average LTV has also moved higher, reaching 61.2% so far this year, compared with 61.1% last year, 56.9% in 2024 and 54.9% in 2023. That increase comes as the sector's construction pipeline has contracted from its peak in 2022, after demand for industrial space surged following the Covid lockdowns in 2020. The shift suggests lenders have grown more comfortable relying on industrial real estate as collateral as supply conditions stabilize. The SASB-heavy composition has also coincided with an increase in average securitized industrial loan size, which reached $177.8 million this year, up from $143.9 million last year and $118 million in 2024.
The evidence is drawn from a single Trepp analysis, so the findings reflect one data provider's view of the securitized commercial real estate market. The dossier does not include performance data on delinquencies, tenant credit quality, or geographic concentration within the industrial sector. What remains to be watched is whether conduit issuance picks up in the final months of 2026, whether average LTV continues to climb, and whether the large SASB loans perform as their collateral pools mature.