CRE Loan Rates – Powered by SOFR & U.S. Treasury Benchmarks.

Commercial real estate (CRE) loan rates are primarily driven by benchmark indices such as SOFR (Secured Overnight Financing Rate) and U.S. Treasury yields, which form the foundation for most floating and fixed-rate commercial financing structures.

At Commercial Partners of Texas (www.amerimort.com), CRE financing is structured using institutional market pricing tied directly to these benchmarks, ensuring transparent and competitive loan execution across all property types nationwide.

How CRE Rates Are Determined

CRE loan pricing typically follows the formula:

SOFR or Treasury Rate + Lender Spread = Final Interest Rate

• SOFR-based loans are commonly used for floating-rate bridge, construction, and mezzanine financing.

• U.S. Treasury-based loans are typically used for fixed-rate permanent financing (5-year, 7-year, or 10-year terms).

  
  

Lender spreads vary based on:

• Property type (multifamily, retail, industrial, office, hospitality)

• Loan-to-value (LTV)

• Debt service coverage ratio (DSCR)

• Sponsor strength and experience

• Market liquidity and credit conditions

  
  

Current Market Insight

Based on current capital markets conditions, SOFR remains the primary floating benchmark for CRE lending, while Treasury yields drive long-term fixed-rate structures.

In today’s environment, all-in CRE loan rates can start as low as 5.66%, depending on:

• Strong sponsorship

• High-quality stabilized assets

• Conservative leverage

• Favorable DSCR underwriting

  
  

Example of CRE Pricing Structure

• SOFR Index: ~3.6%

• Lender Spread: ~2.0%–3.0%

• All-in Rate: ~5.66% – 6.75% (depending on structure and risk profile)

Fixed-rate loans follow similar logic using Treasury benchmarks:

• 5-Year Treasury + Spread

• 10-Year Treasury + Spread

  
  

Why Benchmarks Matter

SOFR and Treasury rates reflect real-time capital market conditions and Fed policy expectations. As benchmark rates move, CRE borrowing costs adjust accordingly, impacting refinancing, acquisitions, and development financing strategies.

Commercial Partners of Texas Advantage

At Commercial Partners of Texas (www.amerimort.com), we structure CRE financing across:

• Acquisition loans

• Refinancing

• Construction & bridge loans

• Mezzanine & preferred equity

• SBA and permanent financing

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Our access to 165+ lending partners allows borrowers to secure competitive pricing tied directly to real-time SOFR and Treasury market conditions. Call us at 832.607.1113 USA or contact us at https://www.amerimort.com/get-a-quote