In Conversation: European CMBS Rebounds Amid Rising Deal Complexity

SitusAMC ranked as the top primary servicer for new CMBS issuances in Europe in 2025, representing more than £2.268 billion in commitments and reinforcing its position as a leading provider of tech-enabled servicing solutions across the region. With a platform that supports both balance sheet and CMBS transactions, the firm currently services more than £106 billion in CRE loans and securitized assets across 11 countries, offering institutional lenders and issuers a sophisticated, cross-border approach.  

To explore the evolving European CRE debt landscape, Andy Garrett sat down with Lisa Williams, Executive Managing Director and Head of Europe, and Gavin Williams, SVP of Primary Servicing. They discussed trends in CMBS activity, shifting transaction structures, increasing investor scrutiny and the regulatory environment shaping the market. Watch the full video above. 

CMBS Regains Momentum, But Transactions Are More Specialized 

European CMBS issuance remains active in 2026, although market volatility has tempered the pace. Through the first half of the year, eight CMBS transactions totaling approximately €4.2 billion have priced, with SitusAMC appointed on half of those deals. Four additional transactions are currently in closing, with expectations for further issuance later in the year if market conditions stabilize. 

"We did expect more, but the market has slightly slowed," said Lisa Williams. "These transactions are always affected by market conditions, as they are at the present time." 

While issuance has returned, today's transactions look very different from those before the global financial crisis. Rather than large multi-loan securitizations, the market is dominated by single-loan deals specifically structured for a CMBS execution. 

"What we have seen and what we've been involved in tend to be single-loan deals," said Gavin Williams. "The loan tends to be arranged and originated specifically for that CMBS exit strategy. Back in the day, CMBS 1.0, there was a ton. Now there's far less of an appetite." 

Transparency and Experience Have Become Critical Differentiators 

As the market has evolved, so has the role of the primary servicer. Today's CMBS transactions require significantly greater reporting, oversight and coordination than earlier generations of securitizations. 

"CMBS 2.0 is way more transparent," Gavin Williams said. "There's a much bigger emphasis on the servicer. The appointment is critical. If there are material changes under the loan agreement, there's more of an onus on the servicer to consult and consent with external parties. There's also a much bigger requirement for reporting." 

That increased complexity has elevated the importance of selecting an experienced servicing partner. Lisa Williams noted that long-standing industry relationships and deep institutional knowledge have become key competitive advantages. 

"It's about those deep relationships we have across the board—not only with lenders, but also sponsors and investors," she explained. "Investors do have a say in which deals they buy into, and sometimes they'll call us to ask our opinion on an asset class. Our team has decades of CMBS experience, which is very unusual in today's marketplace." 

Investor Confidence Will Determine How Far the Market Expands 

Although European CMBS has broadened beyond traditional property sectors, expanding the investor base remains one of the market's biggest opportunities. Certain specialized asset classes still face investor hesitation despite successful transactions. 

"We did one last year involving caravan parks, which was probably the first deal of its kind in Europe," Lisa Williams said. "Some investors simply weren't willing to take that risk. It really comes down to the underlying property, the strength of the sponsor and whether investors feel confident that sponsor will see the transaction through." 

Transparency is central to building that confidence. "The more transparency they can provide, the more comfort can actually be brought about," Gavin Williams said. "The investor base isn't as large as it probably could be. If that broadens, the market opens and it becomes much easier." 

Competition Increases across European CRE Lending 

Beyond CMBS, the European commercial real estate debt market continues to become more competitive as new lenders enter the market. Alongside traditional banks, debt funds and international capital providers—particularly from the U.S. and Asia—are pursuing opportunities across the region. 

"I think it's a lot more U.S.-based capital coming into Europe because they see opportunities," Lisa said. "They're filling a space where some of the traditional investment banks are being more restricted on what they can lend. We've definitely seen a much bigger rise in private credit, and there's a lot more competition in the market." 

That competition makes execution increasingly important for borrowers and lenders alike. 

"The market is so competitive," Gavin Williams said. "We see many people competing over the same deals. If we can deliver and execute those transactions in a timely manner, that's where the opportunity is. We've got the right team, we're in the right space—we just have to keep delivering." 

Looking Ahead: Acquisitions Expected to Accelerate 

Looking toward the remainder of 2026, Lisa Williams expects activity to shift from refinancing toward acquisitions as sponsors deploy capital, assuming interest rate volatility moderates. 

"I think the previous quarters have been more about refinancing," she said. "The big sponsors have done much of their portfolio clean-up and consolidation. I think they'll be very keen in Q4 to really start the acquisition market." 

She also pointed to growing opportunities across Germany and Ireland, along with improving fundamentals for UK office assets. 

"Clients are moving into different regions and different asset classes," Lisa said. "Whether they're sponsors, banks or debt funds, we need to be there—ready to help them execute on their plans going forward." 

SitusAMC is a leading provider of comprehensive commercial real estate finance services in Europe, catering to a wide range of clients in the corporate finance sector. The firm was recently named Servicer of the Year by Real Estate Capital Europe. For more information, contact Lisa Williams at lisawilliams@situsamc.com or visit our website.