The commercial real estate financing market remained resilient during the second quarter of 2026 despite a more challenging interest rate environment, according to the latest Debt Market Survey from the Commercial Real Estate Development Association (CREDA) Research Foundation (formerly the NAIOP Research Foundation).

The report finds that rising Treasury yields and a flattening Secured Overnight Financing Rate (SOFR) prompted borrowers to shift back toward fixed-rate financing while lenders continued to narrow spreads across much of the market. While overall quote activity declined just 2% from the previous quarter, borrowing activity remained near recent levels following the strong rebound seen earlier this year.

Among the report's key findings:

• Spreads narrowed across most loan products, particularly floating-rate and mezzanine financing, even as Treasury benchmarks pushed fixed-rate borrowing costs higher.
• Office spreads continued to compress for long-term fixed-rate loans, while retail financing also strengthened as lenders became more active following wider spreads in the prior quarter.
• Construction loans remained the highest-priced segment of the market, reflecting continued lender caution toward ground-up development.
• The number of fixed-rate senior short-term loan quotes increased while the number of floating-rate senior short-term loan quotes declined, signaling renewed demand for fixed-rate financing.
• Retail became the most quoted property type during the quarter followed closely by office, while industrial declined.

"While elevated interest rates remain a challenge, this report points to encouraging signs that lenders have a growing appetite for commercial real estate," said Marc Selvitelli, CAE, president and CEO of the Commercial Real Estate Development Association. "As lenders regain confidence in sectors like office and retail, owners and developers may find more financing opportunities than market headlines suggest.”

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.