CRE Financing Rates Breakdown By Property Type | April 2024
Terrydale Capital
Apr 9, 2024 7 Min read
As we continue to generate quotes for various types of commercial real estate assets, it enables us to stay abreast of dynamic market changes in real-time. With a dedication to securing the most advantageous financing solutions for our clients, we have meticulously compiled an extensive selection of financing rates observed across the nation, customized to suit different asset categories for you to get some insight to the market as of April 2024.
Multifamily
Rate Range: 5.75% - 10.95%
Quoted Average: 8.01%
As we continue on into 2024, we see agency options continuing the trend of offering the most competitive options on the market with some options hitting low to sub-6%. HUD options remain strong for these assets especially when it comes to refinancing. Additionally, we have seen an uptick in CMBS competitive CMBS options. Distressed multifamily properties are beginning to rear their heads extensively in the market, giving potential investors ample opportunities. Investors and owners should also keep an eye on rapidly growing maturities daily.
Industrial
Rate Range: 7.50% - 11.00%
Quoted Average: 8.63%
Continuing our focus on quoting for industrial investments, we've observed a decline in average interest rates linked to this asset class. Notably, credit unions and banks have consistently presented some of the most competitive rates within this market segment.
Self-Storage
Rate Range: 7.79% - 10.50%
Quoted Average: 8.42%
Similar to industrial investments, we've observed a continued slight decrease in average interest rates across the board, primarily originating from banks and credit unions.
Retail
Rate Range: 6.75% - 7.25%
Quoted Average: 6.92%
There has been a continued decrease in average interest rates for retail assets. By prioritizing tenant profiles and adopting a more localized strategy for projects, we've pinpointed credit unions and banks as the most competitive avenues for retail ventures.
Land
Rate Range: 10.00% - 13.75%
Quoted Average: 12.19%
Continuing the pattern set last year, many traditional lenders continue to favor developmental land but exercise caution regarding speculative projects. This strict criteria has led to higher overall rates and a limited pool of willing lenders.
Single Family Portfolio
Rate Range: 7.91% - 12.00%
Quoted Average: 10.91%
Similar to the multifamily sector, agency loans remain key contenders for both individual and portfolio projects. Furthermore, HUD and CMBS options consistently demonstrate significant competitiveness in this context. However, there have areas of higher rates as lenders combat houses for strictly investment purposes in efforts to keep housing open for true homebuyers.
Data Center
Rate Range: 7.50% - 11.00%
Quoted Average: 9.25%
A burgeoning asset class since 2023, data centers are anticipated to witness a substantial surge in investment activity in 2024. We strongly recommend investors seeking portfolio diversification to diligently assess and explore opportunities within the data center sector as they emerge.
Office
Rate Range: 8.27% - 9.50%
Quoted Average: 8.76%
Although lending activity for office assets was exceedingly sluggish in 2023, there are indications of a modest resurgence in lenders offering office loans. However, those participating lenders continue to uphold stringent underwriting requirements.
RV Park
Rate Range: 8.25% - 9.00%
Quoted Average: 8.33%
Despite being a more niche asset class, we have seen increased activity in RV Park investment over the last month. With a wide range of applicable financing routes and a more straightforward underwriting process, we have seen relatively steady rates compared to other assets.
Mobile Home
Rate Range: 7.40% - 9.25%
Quoted Average: 8.33%
As demand continues to soar for affordable housing options, many investors have turned their eyes towards mobile home parks. Mobile homes have benefitted from lower rates and streamlined underwriting and pose a unique diversification to any portfolio.
Hotel
Rate Range: 9.00% - 10.50%
Quoted Average: 9.55%
Investment activity in hotels has increased steadily since the beginning of the year. We have seen more and more opportunities in the market and more lending options opening up with a broader variety of lenders being open to the asset.
*Rates are dependent upon financing leverage, borrower creditworthiness, asset, location, lender and more. For an accurate quote on your commercial asset, contact us at Terrydale Capital or submit your deal to Terrydale Live for a financing quote within 24-hours.
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Headquartered in Dallas, Texas, Terrydale Capital is a leader in commercial real estate financing. We have close relationships with the nation’s top banks, lenders & family offices allowing us to provide the most competitive financing solutions in the market.
