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Market Intelligence
Monitor bank appetite, underwriting standards, rates, and terms
Data as of Live FRED Data · Sources: Federal Reserve, FRED, CoStar, CBRE Research
Debt availability strengthened 52% YoY in Q1 2026 despite the Fed holding rates at 3.50-3.75%. Lenders are competing aggressively for quality NNN collateral. CMBS conduit floors at 6.35%, agency multifamily at 5.99%, and bridge lending starting at 8.99%. The surge reflects lender balance sheet rebuilds after 2023-2024 caution, not rate-driven demand — a meaningful distinction for borrowers timing acquisitions.
The 2025 inflation resurgence ended expectations for continued rate cuts. CPI stuck at 3.4% in July 2026 — above the Fed's 2% target. Three FOMC members dissented in favor of rate hikes at the July meeting. Commercial mortgage rates range from 5.50% (SBA 504) to 8.99%+ (bridge), with DSCR loans starting at 5.80%. Borrowers locking in fixed rates now are hedging against potential hikes in H2 2026.
CMBS delinquency rates fell to 4.82% in Q2 2026, down from 5.21% in Q1 — the first quarterly improvement in four quarters. Office and lodging remain the most stressed sectors. Industrial and healthcare delinquencies decreased. New issuance is returning for investment-grade collateral pools, but underwriting standards remain tighter than pre-2022 levels. Non-recourse CMBS financing available for creditworthy NNN deals at 6.35-7.00%.
Corporate sale-leaseback volume is rising as tenants lock in capital ahead of potentially higher borrowing costs. Q1 2026 CRE transaction volume hit $136B, up 27% YoY and 7.4% above the five-year average. Net lease transaction volume remains steady through H1 2026, supported by institutional demand for the asset class. Loan approval rates at 54%, with speed-to-close at 60-75 days.
CRE lending has undergone dramatic cycles. Pre-COVID NNN financing was 4.0-4.5% with 65%+ LTV. The pandemic shut markets temporarily. The 2022-2023 hiking cycle pushed rates to 7.2-7.8% with tighter underwriting. The 2024 rate cuts briefly eased conditions before the 2025 inflation reversal pushed rates back up. The current environment — Fed at 3.50-3.75%, 10Y Treasury near 4.69%, CPI at 3.4% — represents a structurally higher rate regime. Debt is available and abundant, but priced for a world where 2% inflation may not return soon.
Data and analysis on this page are for informational purposes only and do not constitute investment, financial, or tax advice. Figures may be estimated from publicly available sources and should be verified with primary data providers (CoStar, MSCI RCA, CBRE, FRED) before use in investment decisions. Past performance does not guarantee future results.