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CRE Lending Enters Period of Transition as Q3 2026 Ends
Commercial real estate lending activity in the third quarter of 2026 reflected a market in transition as interest rates moved higher in September, CBRE said Monday. The latest CBRE Lending Momentum Index stood at 0.7 at the end of Q3, unchanged from a year ago but down from 1.0 at the end of Q2.
As interest rates and Treasury yields both moved higher in September following the business-as-usual financing market in July and August, “The result was a repricing across both debt and equity markets for acquisitions, refinancings and recapitalizations, as investors weighed a wider range of potential outcomes amid continued inflation concerns and geopolitical uncertainty,” said James Millon, president & co-head of capital markets, U.S. & Canada, for CBRE.
He continued, “Despite that volatility, capital remained available and credit continues to attract investor demand because of its yield and income characteristics. That ongoing appetite for credit should support capital availability even as markets work through near-term uncertainty.”
Commercial loan-to-value ratios averaged 64.3% in Q3 2026, down from 66.9% a year ago, while multifamily LTV ratios increased to 66.3% from 64.9%.
- ◦Financing
