CMBS Weekly: JLL Conference Call Recap: Data Centers’ success is drawing regulatory scrutiny

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CMBS Weekly: JLL Conference Call Recap: Data Centers’ success is drawing regulatory scrutiny

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CMBS Weekly

JLL Conference Call Recap: Data Centers’

success is drawing regulatory scrutiny

Big issuance despite holiday week, pipeline quiet for now 10 July 2026

With the primary market effectively clearing its backlog heading into the Fourth of July, Securitized Products Strategy

only one deal priced this week and the forward pipeline is relatively quiet for the United States

moment. We expect activity will accelerate over the coming weeks as issuers return Alan Todd, CFA

from the holiday lull. With a record SASB issuance pace that appears to be largely CMBS Strategist

unfazed by the prospect of a higher-for-longer rate environment we foresee $100bn of BofAS+1 646 855 6383

issuance in 2026. We remain overweight both private label and Agency CMBS. We alan.todd@bofa.com

continue to favor higher quality (AAA/AA) floating rate SASB and CRE CLO paper. Nick O'Brien

CMBS Strategist

Data Center relative value in CMBS BofAS+1 646 855 6366

nicholas.obrien@bofa.com

This week, we take a closer look at AI-linked debt issuance across the corporate, ABS,

and CMBS markets to identify where investors can find the most compelling relative

value. Despite the sheer volume of issuance from the hyperscalers, spreads on the

largest technology issuers remain exceptionally tight. By contrast, data center CMBS

paper, backed by hyperscaler tenancy, offers investors the ability to capture significantly

wider spreads than comparable corporate debt while maintaining exposure to high-

quality counterparties. We remain constructive on SASB data center deals, supported by Exhibit 1: Data Center spreads traded