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CRE Lending Benchmarks Diverge in Q1
The commercial real estate lending market is being pulled in two directions, according to a new NAIOP Research Foundation report based on data from Altus Group’s first-quarter 2026 survey of CRE borrowers and lenders. Although Treasury yields rose modestly, pushing fixed-rate all-in costs higher for borrowers, conversely the Secured Overnight Financing Rate continued its descent, providing meaningful relief on the floating-rate side.
Adding to the uncertainty, the Federal Reserve held rates steady at its first two meetings of 2026. The path forward has only grown murkier since Q1 as rising energy prices from the Middle East conflict cloud the inflation outlook and push the timeline for any further cuts into question.
“This first-quarter data shows a CRE financing market that is regaining momentum,” said Marc Selvitelli, CAE, president and CEO of NAIOP. “While rate dynamics remain complex, it’s encouraging to see stronger quote volumes as lenders re-engage, and conditions easing for floating-rate borrowers.” The report is authored by Omar Eltorai, senior director of research, Altus Group, and will be released on a quarterly basis throughout the year.
- ◦Financing
- ◦Economy
- ◦Policy/Gov't
