A Borrower’s Market – June 15, 2026
Investor competition for property acquisitions hasn’t quite reached the level of competitiveness for loans to fund the deals
A key metric for commercial real estate capital markets reached a new high in April: global credit competition, fueled by an acceleration in refinancing and large loan placements. That’s according to JLL, which has just added the Global Credit Intensity Index to its suite of capital indicators.
Pairing this new index, which tracks active lenders and the competitiveness of loan terms, with the existing Global Bid Intensity Index that measures real-time buyer activity points to a hyper-competitive debt market alongside expanding investor bidding pools. “Our latest proprietary indices reveal a key divergence: while bidder engagement is strengthening, the credit markets have surged to record levels of competitiveness,” JLL reported last week. It’s a divergence JLL has observed since the beginning of 2025. “This dynamic signals a clear opportunity for investors who can leverage the favorable financing environment.”
Put another way, bidder activity hasn’t quite reached the level of lender competition. “Favorable financing is more accessible than asset competition is intense, providing an advantage for decisive acquirers,” according to JLL. The company notes an above-average share of refinancing activity relative to new acquisitions. Whether the goal is a refi or a new acquisition, though, JLL sees the current environment as a borrower’s market.
JLL cited a near-record number of distinct lenders active across all capital sources. They’re competing to place capital and expanding their risk tolerance, triggering a notable rise in winning loan-to-value (LTV) rates since 2026 began.
Simultaneously, investment sales competitiveness has shown steady improvement over the past year. Following some seasonal softening to start the year, JLL said, the weight of capital active in the transaction market is rising as investors are drawn to the strong relative value proposition of commercial real estate, even amid a backdrop of macroeconomic and geopolitical uncertainty.
“We are seeing a hyper-competitive financing environment,” said Richard Bloxam, CEO, Capital Markets, JLL. “The sheer volume of debt capital chasing yield is near all-time highs, and lenders are moving aggressively to win business. When you combine this highly competitive debt environment with a steady rebuilding of investor bidding pools, it’s clear that a powerful new liquidity cycle is underway.”
Although a gap between buyer and seller expectations persists on a number of transactions—notably in the U.S. multifamily sector, where rent growth has been more subdued—the overall global bid-ask spread has narrowed significantly since the market trough we saw in 2023. That this gap persists is the final hurdle that investors need to overcome, and it calls for disciplined underwriting.
JLL sees this sustained stability over the past year demonstrating a strong foundation of pricing alignment, paving the way for “a more predictable and steady transaction environment” in the months ahead.
“The credit markets globally are currently acting as a significant catalyst for this recovery, providing vital optionality for property owners facing loan maturities,” said Trey Morsbach, head of US Debt Advisory, Capital Markets, JLL. “As debt is successfully refinanced and pricing stability further takes hold across major property sectors, we expect this competitive lender appetite to fuel a broader and active acquisition market in the second half of the year.”
Investment activity traditionally reaches a peak in the fourth quarter, as investors race to bring their deals across the finish line. The combination of the seasonal rush and the market dynamics JLL is seeing should be quite interesting.