- Survey participants logged 1,577 CRE loan quotes in Q3, up 13% from Q2 and 18% from a year earlier, even as Treasury yields rose and most spreads widened.
- The 10-year Treasury averaged nearly 4.76% and the 5-year about 4.50%, while fixed-rate mezzanine spreads jumped 88 bps and short-term floating-rate senior loans reached 39% of quotes.
- Yields have since climbed further, with the 10-year at 5.10% on Nov. 12, so the report advises owners with loans maturing within 18 months to consider locking rates now.
Lenders are quoting more CRE loan quotes than a year ago, but they want higher pay and expect high rates to stay, according to GlobeSt’s look at a third-quarter report.
The Commercial Real Estate Development Association report, built on Altus Group data, counted 1,577 quotes. That’s 13% above Q2 and 18% above Q3 2025.
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Rates Moved Against Borrowers
Benchmarks climbed across the curve. The 5-year Treasury averaged about 4.50%, a 41 bp increase on Q2, and the 10-year came in near 4.76% after a 33 bp rise. SOFR ticked up about 5 bps to 3.67%.
Short-term yields rose alongside long-term ones, the report said, so there was no curve relief.
Spreads Added to the Bill
Most spreads widened. Fixed-rate mezzanine jumped 88 bps, the sharpest move.
Long-term fixed senior spreads grew 18 bps for lower-leverage deals and 42 bps for higher-leverage ones. Floating senior spreads were 18 bps wider in both tiers. Only short-term fixed senior stayed roughly flat.
What Lenders Are Quoting
Floating-rate senior debt on short terms dominated, at 39% of quotes (+6 points on Q2). Fixed-rate paper gave up that share: short-term fixed senior slid to 23% and long-term fixed senior to 16%.
Mezzanine at fixed rates edged up to 7% of quotes. Fixed preferred equity held at 3%, though that is four points below a year ago.
Construction Gains, Office Slips
By property type, construction made the biggest jump, going from 13% of quotes to 17%. Office lost the most ground, sliding from 25% to 21%, entirely because of non-trophy buildings. Top-tier office stayed at 6%.
Retail kept the top spot with 25%. Industrial gained two points to 21%, and apartments didn’t move at 17%.
Zoom Out
This is a reversal from earlier in the year. We covered how CRE loan spreads had narrowed for 2026 refinancing.
Inflation isn’t helping. See our brief on how October CPI rose 0.4%, raising odds of a December Fed hike.
Why It Matters
More quotes mean capital is available across sectors, which the report called its most encouraging signal. But borrowers are paying more for it, and lenders are underwriting a higher-for-longer world.
The report suggests owners with maturities in the next 18 months may fare better locking in now than waiting for a Fed cut.
What’s Next
Rates have moved against borrowers since quarter-end. The 10-year Treasury hit 5.10% on Nov. 12 after dipping under 5%, and the 5-year was at 4.95%.
If yields keep climbing, Q4 financing costs could land well above the levels in this report.
