CRE Debt Markets Hit Q2 Rate Floor as 1,794 Quotes Shift Toward Fixed Loans
Updated
Updated · Altus Group · Aug 20
CRE Debt Markets Hit Q2 Rate Floor as 1,794 Quotes Shift Toward Fixed Loans
1 articles · Updated · Altus Group · Aug 20
Summary
All-in CRE borrowing costs were nearly unchanged in Q2 2026, slipping just 4 basis points quarter over quarter after SOFR flattened at 3.62% and Treasury yields climbed.
Fixed-rate demand strengthened as the 5-year Treasury rose 32 basis points to 4.09% and the 10-year gained 22 basis points, while floating-rate relief faded with the Fed on hold.
Quote volume eased 4% to 1,794 from 105 participants, but competition held up at 5.3 quotes per financing request; fixed senior short-term quotes jumped 28% as floating senior short quotes fell 16%.
Property-level pricing was mixed: construction all-in rates fell 26 basis points to 6.08%, office dipped to 5.84%, while hotel rose 25 basis points to 6.07%.
The survey points to a narrower relief window for CRE borrowers, with markets now pricing higher-for-longer rates and even better-than-two-thirds odds of a Fed hike before year-end.