CRE Loan Spreads Narrow for 2026 Refinancing

CRE loan spreads narrow across property types, improving refinancing. Multifamily leads while office lags due to ongoing credit risk.

April 17, 2026

Valerija I.

CRE loan spreads tightened by 12–18 basis points year-over-year across property types.
As of Q1 2026, multifamily loans have the tightest spreads, with office remaining the widest due to credit risk.
Refinancing conditions have improved as spreads narrow and Treasury yields stabilize near 4.25 percent.
Office sector spreads, 66 bps higher than multifamily, still reflect lender caution and elevated distress.

Key Takeaways

Spreads Tighten Across CRE Loan Types

CRE loan spreads to US Treasury rates have compressed over the past year, according to CRED iQ, narrowing across multifamily, industrial, retail, and office loans. As of late Q1 2026, multifamily loans show the tightest spreads at 154 basis points over the 10-year Treasury, while office loans remain the highest at 220 basis points.

Multifamily: 154 bps (5.79% coupon)
Industrial: 162 bps (5.87% coupon)
Retail: 176 bps (6.01% coupon)
Office: 220 bps (6.45% coupon)

Market Dynamics in the Past Year

Year-over-year, multifamily led tightening with an 18 bps reduction, followed by 17 bps each for retail and office, and 12 bps for industrial. The most significant spread compression happened in Q1 2026, as Treasury volatility eased and conduit issuance returned.

10-year CRE loan spreads to US Treasury by property type from Apr 2025 to Mar 2026 showing tightening across sectors; multifamily lowest at 154 bps, office highest at 220 bps, with a brief spike in early 2026 before stabilizing.

Office Loans Remain an Outlier

Despite improvements, office loan spreads stand 66 bps above multifamily due to persistent sector distress and rollover risk. Lender caution around office performance has kept pricing wide, even as other CRE sectors converge on tighter spreads. This divergence aligns with broader signals that financing conditions are not tightening uniformly across sectors, with office continuing to reflect elevated risk premiums relative to other property types.

Refinancing Outlook for 2026

The current CRE loan spread environment supports 2026 maturities. The 10-year Treasury sits at 4.25 percent. This level creates a more favorable backdrop for refinancing. CMBS conduit 10-year spreads sit near 250 bps. Meanwhile, life company quotes hold closer to 170 bps. These levels reflect improving credit conditions across lending channels. As a result, borrowers see better refinancing windows than last year. At the same time, market participants continue to track shifts in CRE loan spreads.