Commercial real estate (CRE) financing activity grew in the third quarter of 2026 even as borrowing costs rose, according to the latest Debt Market Survey from the Commercial Real Estate Development Association Research Foundation (formerly the NAIOP Research Foundation). The report draws on Altus Group’s quarterly survey of CRE borrowers and lenders. It describes an active but increasingly expensive financing market.

Among the report's key findings:

• Borrowers shifted back toward floating-rate debt. Floating-rate products regained the majority of quote activity, reversing the second quarter’s tilt toward fixed-rate loans.
• Construction financing activity surged. Construction took a notably larger share of quotes, driven largely by multifamily and industrial projects.
• All-in costs rose across nearly every property and product type. Fixed-rate loans saw the steepest increases, while floating-rate costs rose more modestly.
• Apartment and industrial remain the most tightly priced sectors. Both continue to offer the lowest-cost property-level financing in the market.
• Construction financing grew more expensive. Lenders widened spreads on ground-up projects across nearly every loan product.
• Lenders’ financing costs declined. This suggests wider spreads on property loans reflect lenders pricing in more risk rather than retreating from the market.

“Lenders stayed active in the third quarter even as the Fed raised rates for the first time since 2023 and Treasury yields climbed,” said Marc Selvitelli, CAE, president and CEO of the Commercial Real Estate Development Association (CREDA). “Quote volume increased and capital remains available across property types. Borrowers are paying more, but they are not being shut out.”

The report is authored by Omar Eltorai, senior director of research, Altus Group, a leading provider of CRE intelligence. It is released quarterly 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.