Question 1

Are Miami hotel CMBS properties good acquisition targets in 2026?

Accepted Answer

Miami hotels with CMBS debt are in an interesting position: operational performance has largely recovered to or exceeded 2019 levels, but legacy debt structures from pre-COVID originations (or COVID-era loan modifications that loaded additional fees and deferred interest) make those loan balances hard to refinance at current terms. Buyers who acquire Miami hotel CMBS assets at workout prices and refinance into new structures can benefit from the operational recovery without carrying the legacy debt burden. RevPAR in South Florida is among the highest in the US, supporting acquisition thesis for well-located hotel assets.

Question 2

How does the seasonal nature of Miami tourism affect CMBS workout timelines?

Accepted Answer

Miami hotel and retail CMBS assets typically show their strongest financials in Q1 (January-April high season). Servicers managing Miami hotel workouts often wait for Q1 performance data before finalizing valuation assessments, which can create timing effects in disposition - Miami hotel CMBS assets frequently come to market in Q2 (May-June) after Q1 performance is documented. Buyers who know to monitor the CMBS remittance cycle for Miami hotel assets can time their approach to the servicer to coincide with this natural window.

Question 3

What Miami submarkets have the highest CMBS special servicing concentration in 2026?

Accepted Answer

Miami Beach hotel corridor (Collins Avenue, Ocean Drive) has the highest hotel CMBS concentration. Brickell and downtown Miami have the highest office CMBS concentration. Broward County (Fort Lauderdale, Pompano Beach) has significant retail CMBS legacy from 2015-2017 enclosed mall originations. Palm Beach County carries light-industrial and retail CMBS that is beginning to transfer to special servicing. The Florida Keys have resort/hospitality CMBS in workout from COVID-era modifications.