Commercial Real Estate Rates display in USA ?
- George Tesfa
- Apr 23
- 2 min read
Call us 832.607.1113 USA for best loan rates and terms, or email me at george@amerimort.com - VP Partner.
1. Bank-Term Loans (Permanent Financing)
Property Type | Typical Rate Range (Annual %) | Loan Term | LTV |
Office | 5.25 – 6.00 | 5–10 years | ≤ 65 % |
Retail | 5.00 – 5.75 | 5–10 years | ≤ 65 % |
Industrial/Warehouse | 4.75 – 5.50 | 5–10 years | ≤ 70 % |
Multifamily (Apartments) | 4.50 – 5.25 | 5–10 years | ≤ 75 % |
Hospitality (Hotels) | 5.50 – 6.25 | 5–10 years | ≤ 60 % |
Note: Multifamily continues to enjoy the lowest spreads given high demand from both agency and life‑company investors.
2. Agency Loans (Fannie Mae, Freddie Mac, HUD)
Program | Rate (Annual %) | Term | LTV / Leverage |
Fannie Mae Multifamily | ~ 4.25 | 10 years | ≤ 80 % (recourse); ≤ 75 % (non-recourse) |
Freddie Mac Multifamily | ~ 4.20 | 10 years | ≤ 80 % (recourse); ≤ 75 % (non-recourse) |
HUD 221(d)(4) (New / Substantial Rehab) | ~ 4.75 | 35 years | ≤ 85 % |
HUD 223(f) (Stabilized Property) | ~ 4.50 | 35 years | ≤ 80 % |
Tip: Agency debt often carries slightly lower all‑in costs but includes newer covenants around ESG reporting and property management controls.
3. Bridge Loans / Mezzanine Financing
Loan Type | Rate (Annual %) | Term | LTV / Leverage |
Bridge (Senior) | 7.00 – 9.00 | 1–3 years | ≤ 75 % |
Mezzanine | 10.00 – 12.00 | 1–3 years | Combined LT V up to 85 % |
Use Case: Bridge debt is ideal for repositioning or lease‑up scenarios when permanent financing isn’t yet available.
4. Construction Loans
Loan Type | Rate (Annual %) | Term | Loan-to-Cost / LTC |
Construction (Bank) | 6.00 – 8.00 | 12–36 months | ≤ 75 % of hard costs |
Construction (CMBS) | 5.50 – 7.50 | 12–24 months | ≤ 70 % of project costs |
Reminder: Construction loans often require interest reserves and carry higher upfront fees (~1–2 %).
5. CMBS (Commercial Mortgage‑Backed Securities)
Property Type | Rate (Annual %) | Term | LTV |
All major property types | 5.25 – 6.50 | 5–10 years | ≤ 65–70 % |
Market Note: CMBS spreads have tightened modestly this year as investor demand rebounded, but structures remain less flexible than balance‑sheet loans.
What’s Driving Rates Today?
Fed Funds & Treasury Yields: CRE rates generally trade at spreads of 175–225 bps over the 10‑year U.S. Treasury (currently ~4.10 % on 10‑yr Treasuries), so base rates pushed higher by monetary policy tightening.
Credit Conditions: Lenders have become more selective—strong assets in primary markets get the best pricing.
Inflation & Bond Markets: Inflation expectations and Fed balance‑sheet dynamics continue to influence longer‑term bond yields.
Next Steps for You:
Refinance Analysis: If you own stabilized assets, compare your current debt coupon versus these market rates to see if refinancing makes sense.
Lock Strategy: Consider rate locks or caps, especially for construction or bridge loans where treasury yields can be volatile.
Agency Eligibility: For multifamily, run your deal through both Fannie and Freddie pricing engines—small differences in underwriting can shift economics by 10–15 bps.
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