CLS CRE Lender Pricing Report
CLS CRE Lender Pricing Report: Q1 2026
By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions
Report number: Q1 2026 | Coverage period: January 1, 2026 to March 31, 2026 | Published: April 25, 2026
Commercial real estate lending pricing in Q1 2026 reflected a market in transition. The 10-year Treasury averaged approximately 4.20 percent through the quarter, providing a stable benchmark for fixed-rate CRE lending. Agency multifamily executions tightened modestly versus Q4 2025, with median Fannie Mae DUS Conventional 10-year fixed pricing at 5.85 percent and Freddie Mac Optigo at 5.78 percent. Life insurance company pricing on stabilized trophy multifamily compressed to 5.55 percent for relationship borrowers at 60 percent LTV. CMBS conduit multifamily pricing averaged 6.45 percent reflecting the conduit pool premium versus agency. Bridge debt fund pricing on transitional multifamily averaged SOFR plus 475 basis points, approximately 9.35 percent all-in given prevailing SOFR. SBA 504 CDC debenture rates held steady through the quarter at approximately 5.85 percent for 25-year terms. The dispersion between best and worst quoted execution on similar deals widened in Q1 2026 versus Q4 2025, reinforcing the value of competitive lender shopping.
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Section 1
Agency Multifamily Pricing
Fannie Mae DUS Conventional and Freddie Mac Optigo Conventional pricing on stabilized 10-year fixed multifamily by deal size band, aggregated across CLS CRE Q1 2026 quote pipeline. Pricing reflects 70 to 75 percent LTV with 1.25x DSCR floor and full yield maintenance prepayment. Smaller balance loans (Fannie Small and Freddie SBL) priced separately due to streamlined program structure.
| Deal Size Band |
Fannie DUS Median |
Freddie Optigo Median |
Spread vs Treasury |
Sample Size |
| $1M to $5M (Fannie Small / Freddie SBL) |
5.78% |
5.72% |
+158 bps avg |
Sample sufficient for median |
| $5M to $10M |
5.85% |
5.78% |
+162 bps avg |
Sample sufficient for median |
| $10M to $25M |
5.92% |
5.85% |
+167 bps avg |
Sample sufficient for median |
| $25M to $50M |
5.88% |
5.81% |
+163 bps avg |
Sample sufficient for median |
| $50M+ |
5.85% |
5.78% |
+159 bps avg |
Sample sufficient for median |
Key takeaways
- Freddie Mac Optigo executed 5 to 7 basis points inside Fannie Mae DUS on the median Q1 2026 deal, consistent with the multi-quarter pattern.
- The spread of best to worst quote on identical deals averaged 18 basis points across the quarter, reinforcing the value of competing the agencies on every refinance.
- Mission-Driven and Targeted Affordable Housing executions priced approximately 12 to 18 basis points inside conventional, reflecting cap exclusion benefits.
- Interest-only periods at 70 to 75 percent LTV averaged 2.4 years on Fannie Conventional and 2.1 years on Freddie Conventional, a slight tightening from Q4 2025.
- The pricing dispersion within each Seller-Servicer roster widened modestly, with relationship-tier pricing increasingly meaningful versus standard quotes.
Q1 2026 agency multifamily pricing was characterized by stable Treasury benchmarks, modest spread tightening, and a continued bifurcation between relationship and non-relationship pricing tiers. Sponsors with established Seller-Servicer relationships consistently captured 5 to 12 basis points inside standard market quotes.
Section 2
Life Insurance Company Pricing
Life insurance company stabilized 10-year and 15-year fixed pricing on Class A multifamily, office, retail, and industrial across CLS CRE Q1 2026 quote pipeline. Life co allocator discipline typically capped LTV at 55 to 65 percent across product types.
| Product Type |
10-Year Fixed Median |
15-Year Fixed Median |
Typical LTV |
Pricing vs Q4 2025 |
| Class A multifamily (relationship tier) |
5.55% |
5.72% |
55 to 60% |
5 bps tighter |
| Trophy multifamily (top markets) |
5.45% |
5.62% |
55% |
Flat |
| Class A office (CBD, credit tenant) |
6.25% |
6.45% |
55 to 60% |
8 bps tighter |
| Class A grocery-anchored retail |
5.95% |
6.15% |
60 to 65% |
5 bps tighter |
| Stabilized industrial (institutional) |
5.85% |
6.05% |
55 to 65% |
8 bps tighter |
| Net-leased credit tenant industrial |
5.75% |
5.95% |
55 to 65% |
10 bps tighter |
Key takeaways
- Life co pricing on relationship-tier trophy multifamily continues to lead the market at 50 to 65 percent LTV, with select quotes inside 5.50 percent.
- Class A office life co activity remained constrained but priced competitively when quoted, with credit tenancy and long WALT requirements unchanged.
- 15-year fixed term extensions priced at approximately 17 basis points wide of comparable 10-year, modest premium for the longer term lock.
- Industrial allocations grew approximately 8 percent versus Q4 2025 as life co allocators continued to favor the asset class.
- Sponsor relationship tier produced 12 to 22 basis points of inside-market pricing on average versus first-time life co borrowers.
Q1 2026 life co activity reflected continued institutional preference for industrial and trophy multifamily while maintaining narrow office appetite. Relationship discipline continues to drive the most meaningful pricing differentiation across all life co allocators.
Section 3
CMBS Conduit Pricing
CMBS conduit 10-year fixed pricing on stabilized multifamily, office, retail, and industrial across CLS CRE Q1 2026 quote pipeline. CMBS pricing reflects defeasance prepayment and 65 to 70 percent LTV typical.
| Product Type |
10-Year Fixed Median |
Typical LTV |
Spread vs Agency |
Pricing vs Q4 2025 |
| Stabilized multifamily |
6.45% |
65 to 70% |
+60 bps |
5 bps tighter |
| Stabilized industrial |
6.55% |
65 to 70% |
Industrial-specific |
Flat |
| Class B office |
7.45% |
60 to 65% |
+120 bps vs life co |
8 bps wider |
| Stabilized retail (grocery-anchored) |
6.85% |
65 to 70% |
+90 bps vs life co |
5 bps tighter |
| Net-leased credit tenant |
6.65% |
65 to 70% |
+90 bps vs life co |
5 bps tighter |
Key takeaways
- CMBS multifamily pricing held at approximately 60 basis points wide of comparable agency, consistent with multi-quarter spread relationships.
- Class B office CMBS pricing widened modestly reflecting continued conduit reluctance on commodity office.
- Defeasance flexibility continues to be cited by sponsors as a meaningful advantage of CMBS over yield maintenance agency executions.
- Single-borrower CMBS executions on $50M+ portfolios priced approximately 15 to 25 basis points inside conduit pool averages, reflecting deal-specific structuring benefits.
- CMBS conduit issuance volume in Q1 2026 was approximately 14 percent above Q4 2025, supporting healthy pricing competition.
CMBS execution remained the standard alternative when deals fell outside the agency, life co, or bank balance sheet box. The defeasance prepayment optionality continues to differentiate CMBS for sponsors planning early exit.
Section 4
SBA Programs
SBA 504 CDC debenture rates and SBA 7(a) Prime + spread pricing through Q1 2026 across CLS CRE owner-operator pipeline.
| Program |
Rate / Spread |
Term |
LTV / Down |
Sample Size |
| SBA 504 CDC (25-year) |
5.85% fixed |
25 years |
40% LTC of project |
Sample sufficient for median |
| SBA 504 CDC (20-year) |
5.75% fixed |
20 years |
40% LTC of project |
Sample sufficient for median |
| SBA 504 CDC (10-year) |
5.50% fixed |
10 years |
40% LTC of project |
Sample sufficient for median |
| SBA 504 Bank First Mortgage (5-year fixed) |
7.15% fixed |
5-year fixed, 25-year amort |
50% LTC of project |
Sample sufficient for median |
| SBA 7(a) Prime + Spread |
Prime + 2.50% |
10 to 25 years |
85 to 90% LTC |
Sample sufficient for median |
Key takeaways
- SBA 504 CDC debenture rates held remarkably stable across Q1 2026, with the 25-year debenture rate moving in a 12 basis point range.
- SBA 7(a) pricing tracked Prime, which moved with the Federal Reserve target rate (held steady at 4.50 to 4.75 percent through Q1 2026).
- SBA 504 special-purpose down payment requirements continued to apply to gas stations, car washes, restaurants with drive-through, daycare facilities, and similar property types.
- Manufacturing acquisitions accessed the elevated $5.5M SBA 504 CDC cap on approximately 12 percent of CLS CRE Q1 2026 SBA pipeline.
- Combined SBA 504 + 7(a) executions averaged 92 days from term sheet to close, slightly faster than the 95-day Q4 2025 average.
SBA programs continue to provide one of the most powerful long-term fixed-rate cost-of-capital structures available to small and mid-market business owners. The CDC debenture rate stability through 2025 to early 2026 reflects the program's structural attractiveness in volatile rate environments.
Section 5
Bridge Debt Fund Pricing
Bridge debt fund pricing on transitional multifamily, value-add, and lease-up across CLS CRE Q1 2026 quote pipeline. Pricing reflects floating-rate SOFR + spread structures with rate caps required by lender.
| Deal Profile |
Spread Range |
All-In Rate (SOFR 4.65%) |
LTC |
Term |
| Light value-add multifamily (75%+ occupancy) |
SOFR + 350 to 425 |
8.15 to 8.90% |
70 to 75% |
24 to 36 months |
| Heavy value-add multifamily (50 to 75% occupancy) |
SOFR + 425 to 525 |
8.90 to 9.90% |
70 to 75% |
24 to 36 months |
| Lease-up multifamily (under 50% occupancy) |
SOFR + 525 to 700 |
9.90 to 11.65% |
65 to 75% |
24 to 36 months |
| Construction-to-perm bridge (multifamily) |
SOFR + 425 to 600 |
8.90 to 10.65% |
65 to 75% LTC |
30 to 42 months |
| Industrial value-add |
SOFR + 350 to 525 |
8.15 to 9.90% |
65 to 75% |
24 to 36 months |
Key takeaways
- Bridge debt fund spreads in Q1 2026 widened approximately 15 to 25 basis points versus Q4 2025 reflecting continued private credit cost-of-capital pressure.
- Non-recourse structures held as the dominant institutional bridge structure, with carve-outs only.
- Future funding for capital expenditure remained standard on value-add executions, with reserve sizing tied to underwritten business plan.
- Rate cap costs averaged 0.75 to 1.50 percent of unpaid principal balance for 24-month caps at strike near current SOFR, materially affecting all-in cost of capital.
- Bridge to perm refinance volume in Q1 2026 was approximately 18 percent above Q4 2025 as 2024 vintage bridge loans began reaching stabilization.
Bridge debt fund pricing remains materially wider than permanent agency or life co alternatives, reflecting the underwriting risk on transitional properties. The 200 to 400 basis point spread continues to compensate debt fund capital cost and loss expectations on the higher-risk value-add segment.
Section 6
Construction Lending
Construction lending pricing on ground-up multifamily, industrial, and specialty development across CLS CRE Q1 2026 quote pipeline. Pricing reflects floating-rate SOFR + spread with sponsor recourse during construction typical for bank balance sheet executions.
| Deal Profile |
Spread Range |
All-In Rate (SOFR 4.65%) |
LTC |
Recourse |
| Bank multifamily ground-up (Tier 1 sponsor) |
SOFR + 275 to 350 |
7.40 to 8.15% |
60 to 65% |
Recourse |
| Bank multifamily ground-up (mid-market) |
SOFR + 350 to 450 |
8.15 to 9.15% |
55 to 60% |
Recourse |
| Debt fund multifamily ground-up |
SOFR + 425 to 600 |
8.90 to 10.65% |
65 to 75% |
Non-recourse |
| Bank industrial ground-up |
SOFR + 275 to 400 |
7.40 to 8.65% |
60 to 65% |
Recourse |
| HUD 221(d)(4) multifamily new construction |
5.95 to 6.45% fixed |
5.95 to 6.45% |
85 to 90% |
Non-recourse |
| Specialty BTR construction |
SOFR + 425 to 600 |
8.90 to 10.65% |
70 to 75% |
Non-recourse |
Key takeaways
- Bank construction balance sheet capacity remained tight through Q1 2026, with most banks targeting 60 to 65 percent LTC on multifamily and industrial ground-up.
- Debt fund construction execution captured market share where bank balance sheet capacity was limited or where non-recourse was required.
- HUD 221(d)(4) volume in Q1 2026 was approximately 9 percent above Q4 2025 as more sponsors initiated HUD applications anticipating multi-year underwriting timelines.
- Forward commitment programs (Fannie Mae and Freddie Mac) attached to bank or debt fund construction were used on approximately 38 percent of multifamily ground-up financings, reflecting ongoing sponsor preference for permanent take-out rate certainty.
- Construction loan extensions on 2023 to 2024 vintage loans reached approximately 16 percent in Q1 2026, primarily reflecting longer lease-up timelines than original underwriting projected.
Q1 2026 construction lending continued to reflect a market where bank balance sheet capacity is constrained, debt fund execution captures larger share, and HUD 221(d)(4) provides the long-term anchor for sponsors with appropriate hold horizons.
Methodology
How This Report Was Produced
This report aggregates pricing data from the CLS CRE Q1 2026 quote pipeline, including approximately 240 lender quotes received between January 1 and March 31, 2026 across permanent, bridge, and construction lending channels. Quotes are aggregated to medians and ranges with anonymization of specific lender identities (lenders categorized by source type only). Pricing reflects standard structures (full yield maintenance or defeasance prepayment, standard recourse profiles, typical leverage and DSCR sizing) with non-conforming structures excluded. The pipeline is national in scope with quotes from approximately 75 distinct lenders across all major CRE financing channels. Data is collected from active deal quotes, not from public secondary market or index data. Sample sizes by category are sufficient for median statistical reliability where indicated.
Detailed methodology, data definitions, and sample composition are documented at /research/methodology.html.