- C-PACE financing volume jumped 63% in 2025 to $3.6B, up from $2.2B the prior year.
- Average C-PACE loan size doubled to $39M, with the largest at $465M in Washington DC.
- Florida led C-PACE lending in 2025, with New York City and other states seeing growing activity.
- Combination C-PACE and construction financing is an emerging trend for borrowers.
Record Year for C-PACE
C-PACE financing posted substantial growth last year, according to Bayview PACE, with volume soaring from $2.2B in 2024 to $3.6B in 2025. The data signals rapidly increasing acceptance of C-PACE as a mainstream capital component by CRE borrowers and lenders nationwide.
Transaction sizes also grew significantly, with the average loan nearly doubling to $39M and the largest nearing $500M. Flexible applications have made C-PACE attractive for multifamily and mixed-use projects, and reach is expanding across market types, reports Multi-Housing News.
Wider Adoption Across States
Florida recorded the most active C-PACE lending last year, driven by high-volume deals in Miami and South Florida. A standout $465M office-to-residential conversion in Washington DC represented the sector’s largest single transaction. The deal also reflects the broader momentum behind office-to-residential conversions as cities look for ways to repurpose underused buildings amid shifting workplace demand. While Florida led in 2025, Texas and California remain longtime C-PACE leaders, and recent regulatory changes have boosted New York City’s pipeline for 2026.
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New Applications and Broader Acceptance
Industry acceptance is fueling C-PACE’s rise, with more borrowers, lenders, and brokers using it to fill out the capital stack. Organizations like the Mortgage Bankers Association and ULI spotlight growing awareness and support. C-PACE program guidelines are broadening in many states, now covering resiliency and other construction components in addition to energy efficiency. Rate spreads are also narrowing, while combination C-PACE and construction lending is allowing for larger and more flexible financing packages.
What’s Next
Given its dramatic growth and wider adoption, C-PACE financing is poised for continued expansion in commercial real estate. The tool’s flexibility and new regulatory momentum—especially in places like New York City—signal another robust year ahead for C-PACE volume, with new applications and larger deals likely on the horizon.
