The Debt Maturity Wall: What Self-Storage Owners Need to Know About Refinancing in 2026–2027
A significant amount of commercial real estate debt is coming due, and self-storage owners with loans approaching maturity should be paying attention.
According to the Mortgage Bankers Association (MBA), approximately $875 billion of commercial and multifamily mortgage balances—17% of outstanding debt—is scheduled to mature in 2026. Another $652 billion is scheduled to mature in 2027.
For owners, a loan maturity isn't simply a date on a calendar. It can force an important decision: refinance, bring additional equity to the table, restructure the debt, or potentially sell the property.
Why Refinancing May Look Different Today
Many commercial properties were financed when borrowing costs were lower. When those loans mature, refinancing at today's terms can change the economics of the investment.
A higher interest rate can mean increased debt service. But interest rates aren't the only consideration.
A lender may also evaluate:
Current property value
Net operating income (NOI)
Debt Service Coverage Ratio (DSCR)
Loan-to-value ratio (LTV)
Occupancy and operating history
Borrower strength and liquidity
Local market conditions
Even a performing self-storage facility may not automatically qualify for the same loan proceeds it received previously.
The Refinance Gap
One potential challenge is a refinancing gap.
Imagine an owner has a $5 million loan maturing, but based on the property's current value, NOI and the lender's underwriting requirements, the new lender is only willing to provide $4.5 million.
The owner now has a $500,000 gap that must be addressed through additional equity, alternative financing, a loan modification, or another strategy.
This is why waiting until shortly before maturity can be risky.
Lending Conditions Are Improving—but Underwriting Still Matters
There are some encouraging signs.
The Federal Reserve's July 2026 Senior Loan Officer Opinion Survey reported that banks had, on balance, eased standards for certain commercial real estate loans during the second quarter.
However, the same survey found that overall CRE lending standards remained toward the tighter end of their historical ranges.
Meanwhile, commercial and multifamily mortgage debt outstanding reached approximately $5.1 trillion in Q2 2026, according to MBA, suggesting that capital remains active in the commercial real estate market.
Financing is available—but the terms and amount available to an individual property will depend heavily on the deal.
What Self-Storage Owners Should Do Before Maturity
Owners shouldn't wait until their loan is 30 or 60 days from maturity to begin evaluating options.
Review your loan documents.Know the maturity date, prepayment provisions, extension options, interest-rate terms and any other requirements.
Calculate your current NOI.Lenders will evaluate the property's ability to support the proposed debt.
Know your DSCR.Understanding how comfortably NOI covers debt payments can provide an early indication of potential refinancing issues.
Estimate today's property value.If value has changed since the original loan was made, your available loan proceeds could change as well.
Stress-test the refinance.Run the numbers at different interest rates, amortization periods and loan amounts.
Start lender conversations early.Banks, credit unions, CMBS lenders, life companies, debt funds and other capital sources can have very different underwriting requirements.
Don't Assume Lower Rates Will Solve the Problem
It can be tempting to delay decisions in anticipation of lower interest rates.
But owners cannot control where rates will be when their loan matures.
A stronger strategy is to determine whether the property can refinance under today's realistic lending conditions and then treat future rate improvements as potential upside rather than a requirement for the deal to work.
NOI Can Be One of Your Best Defenses
One factor owners may have greater control over is the performance of the facility itself.
Increasing rental income, improving occupancy, reducing unnecessary expenses, improving collections and adding ancillary revenue can increase NOI.
Higher NOI can potentially improve DSCR, support valuation and strengthen a property's refinancing position.
For owners approaching maturity, operational improvements made today may have a meaningful impact when lenders evaluate the property later.
The Bottom Line
The commercial real estate "debt maturity wall" doesn't necessarily mean a crisis. MBA's latest figures actually show that scheduled maturities declined from 2025 levels.
But $875 billion scheduled to mature in 2026 and another $652 billion in 2027 still represent a significant amount of debt that must be refinanced, paid off, extended or otherwise resolved.
For self-storage owners, the important question isn't simply:
"When does my loan mature?"
It's:
"If I had to refinance my property today, would the numbers work?"
Owners who answer that question early have more time to improve operations, evaluate lenders, consider alternative financing structures, contribute additional capital if necessary—or explore a sale before the maturity date forces the decision.
Sources & Resources
Mortgage Bankers Association (MBA) — 2025 Commercial Real Estate Survey of Loan Maturity Volumes, February 2026
Mortgage Bankers Association (MBA) — Commercial/Multifamily Mortgage Debt Outstanding, Q2 2026
Federal Reserve Board — July 2026 Senior Loan Officer Opinion Survey on Bank Lending Practices
Disclaimer
This article is provided for informational purposes only and does not constitute investment, financial, legal, lending, or tax advice. Financing availability and loan terms vary by borrower, lender, property and market. Property owners should consult qualified financial, legal and lending professionals regarding their individual circumstances.
Comments