The commercial mortgage-backed securities market slowed in July, with 10 private-label conduit and single-borrower transactions priced during the month, KBRA said. That marked a decline from 18 deals in June.

Single-borrower deals continued to dominate issuance, the rating agency said. The shift toward single-borrower structures has characterized the CMBS market as sponsors seek financing for larger individual assets rather than pooled conduit loans.

The slowdown reflected typical seasonal patterns in securitization activity. July issuance volumes often trail the pace set earlier in the year as deal pipelines thin during the summer months.

Separately, CoStar said it expects U.S. office vacancy to remain steady through 2026 before beginning a gradual decline. National office vacancy stood just below 14 percent in the second quarter of 2026, the firm said.

That vacancy rate was about 30 basis points below the market's mid-2025 peak, CoStar said. The modest improvement suggests the office sector may be approaching a floor after years of rising vacancy driven by remote work and corporate space reductions.

The forecast indicates office fundamentals will stabilize rather than continue deteriorating. CoStar's outlook calls for vacancy to hold near current levels for the remainder of 2026 before trending lower.

The twin developments matter for investors tracking both financing conditions and property fundamentals. CMBS issuance volumes signal the availability and cost of debt capital, while office vacancy trends determine rental income prospects and asset values.

Family offices and other private investors have adjusted strategies in response to both tight securitization markets and elevated office vacancy. Many have shifted capital toward property types with stronger occupancy or waited for clearer signals that office fundamentals have bottomed.