A new CREDA Research Foundation report based on data from Altus Group’s first-quarter 2026 survey of commercial real estate (CRE) borrowers and lenders points to a market pulled in two directions. Treasury yields rose modestly, pushing fixed-rate all-in costs higher for borrowers, but the Secured Overnight Financing Rate (SOFR) continued its descent, delivering meaningful relief on the floating-rate side.

Adding to the uncertainty, the Federal Reserve held rates steady at its first two meetings of 2026, and the path forward has only grown murkier as rising energy prices from the Middle East conflict cloud the inflation outlook and push the timeline for any further cuts into question.

More key takeaways:

• Quote volume bounced back in the first quarter following sequential declines throughout most of 2025; however, year-over-year volume remains below the number of quotes logged in the first quarter of 2025. The product mix was evenly split between fixed- and floating-rate structures, and floating-rate senior debt remained the single most quoted product.
• Benchmark rates diverged: Treasury yields rose modestly, while SOFR fell significantly, creating contrasting dynamics between fixed- and floating-rate borrowing costs. Fixed-rate all-in costs were generally flat to slightly higher, while floating-rate all-in costs fell meaningfully across every property type.
• Spread trends varied meaningfully by property type. Office was the clear standout, with spreads compressing across nearly every product and leverage point, with a narrowing gap between trophy and non-trophy assets. Multifamily and industrial spreads remain tight as both sectors continue to benefit from strong fundamentals and lender comfort with cash flow stability. Retail spreads widened notably after compressing in the fourth quarter.

“This first-quarter data shows a CRE financing market that is regaining momentum,” said Marc Selvitelli, CAE, president and CEO of CREDA. “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, a leading provider of CRE intelligence. This report will be released quarterly throughout 2026, and includes data on quoted interest rates by property type, loan type, maturity and loan-to-value ratio, including for both senior debt and mezzanine loans.

The full report is available exclusively to CREDA members; media can request access by emailing Brielle Scott, CREDA director of marketing and communications, at bscott@CREDAglobal.org.