Short answer
Life companies typically beat CMBS by 25 to 60 basis points on top-tier stabilized office in core markets, especially below 60 percent LTV. CMBS wins on higher-leverage requests (above 65 percent LTV) and in secondary markets where life-cos have pulled back. Always quote both in parallel.
Why does life-co win at low leverage?
Life companies match long-duration liabilities with long-duration assets, so they price 10-year fixed-rate paper aggressively at conservative leverage. Their cost of funds is lower than the conduit cost stack (originator margin, B-piece pricing, rating-agency cost), and they keep the loan on balance sheet without trust expense.
Sources
- Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations · Mortgage Bankers Association · 2026-Q1
- Capital Markets Special Report: Insurance Industry CRE Mortgage Holdings · National Association of Insurance Commissioners (NAIC) · 2025-Q4