We’re pleased to share the latest update from John B. Levy & Company reporting strong returns and improving commercial mortgage fundamentals in 2025 as tracked by the Giliberto Levy Commercial Mort...
G‑L 1 Closes 2025 with Strong Momentum as CommercialMortgage Fundamentals Improve
FOR IMMEDIATE RELEASE
Richmond, VA — February 2026
The Giliberto Levy Commercial Mortgage Performance Index (G L 1) finished 2025 with clear forward momentum, posting a 1.56% total return in the fourth quarter and 8.71% for the full year—its strongest annual performance since before the pandemic and a notable inflection point for the commercial mortgage market.
Beneath the headline returns, G L 1 captured a market in transition, marked by stabilizing fundamentals, improving credit quality, and tightening spreads across property sectors.
Key Signals from the Fourth Quarter
• Broad-based positive returns across all major property types, with office and multifamily showing renewed resilience
• Income remained the dominant source of return, underscoring the durability of commercial mortgages in a higher rate environment
• Spread compression across sectors reflected improving liquidity conditions and rising investor confidence
• Credit performance continued to strengthen, with elevated risk loan exposure declining for a full year—validating disciplined underwriting
• Commercial mortgages outperformed competing fixed income alternatives, including investment grade corporate bonds, CMBS, and U.S. Treasuries, reinforcing their appeal as income-oriented allocations
As markets enter 2026, investors are navigating rate sensitivity, selective capital deployment, and heightened scrutiny of credit risk. In this environment, G L 1 provides timely, data-driven insight into how commercial mortgages are actually performing—not simply how they are perceived.
For investors, asset managers, and allocators seeking transparent benchmarks, sector-level clarity, and early signals on risk and return, G L 1 offers a differentiated lens into a market that is quietly re-establishing its role within diversified portfolios.
Why G L 1
• See how commercial mortgages are really performing
• Track income, credit, and spreads in a single benchmark
• Identify risk and opportunity earlier
• Position portfolios with confidence
Subscribe to G L 1 to stay ahead of shifting fundamentals, monitor credit trends in real time, and better position portfolios as the commercial mortgage cycle evolves. For subscription details or to discuss how G-L 1 can support your investment process, please reach out.
About the Giliberto Levy Indexes
The G L Commercial Mortgage Performance Index (G L 1) tracks investment results for fixed-rate senior mortgages originated by life insurance companies, GSEs, pension funds, and investment managers. G L 1 has been published continuously since 1993, with a return inception date of January 1, 1972.
The G-L High Yield Real Estate Debt Index (G-L 2) measures performance for mezzanine loans, leveraged whole loans, and B notes. G-L 2 production began in 2018, with a return inception date of January 1, 2010.
For more information or to subscribe, please visit www.jblevyco.com or contact:
John Levy (804) 500 9025 | jlevy@jblevyco.com
Julia Grant (804) 500 9026 | jgrant@jblevyco.com
