CRE Financing Rates Breakdown By Property Type | December 2023
Terrydale Capital
Dec 12, 2023 4 Min read
At Terrydale Capital, we actively quote on all varieties of commercial real estate assets giving us an active insight into the market as it shifts. As we continue to seek the most competitive financing avenues on the market for our clients, we have compiled a list of financing rates we have been seeing in the market across the nation tailored to specific assets.
Multifamily
Rate Range: 6.25% - 9.75%
Quoted Average: 7.68%
With rates still seeing a downward trend as of late, agency options have remained great avenues for investors in the multifamily space. Additionally HUD options remain strong for these assets especially when it comes to refinancing.
Industrial
Rate Range: 7.50% - 11.00%
Quoted Average: 8.47%
As we continue to quote on industrial investments, we are still finding a competitive consistency coming from credit unions when it comes to interest rates.
Self-Storage
Rate Range: 7.75% - 11.25%
Quoted Average: 8.40%
Much like industrial investments, we still see a competitive interest rate range coming from the credit union side.
Retail
Rate Range: 6.25% - 10.51%
Quoted Average: 8.11%
With more emphasis on tenancy and more localized focus on projects, we have found the most competitive avenues for retail coming from credit unions and banks.
Land
Rate Range: 7.00% - 12.00%
Quoted Average: 11.25%
In the current market, many traditional lenders have become more preferable towards developmental land and have been very reserved when it comes to speculative projects. This strict criteria has, in turn, led to higher overall rates.
Single Family Portfolio
Rate Range: 6.50% - 11.00%
Quoted Average: 8.25%
Much like in the multifamily sector, agency loans have emerged as top competitors for individual and portfolio projects. Additionally, HUD options have proven rather competitive.
Data Center
Rate Range: 7.50% - 11.50%
Quoted Average: 9.50%
An emerging asset class that has been seeing a large influx of investment activity and is poised to continue to gain popularity in 2024. Investors should take a very close look at data center opportunities as they arise.
Office
Rate Range: N/A
Quoted Average: N/A
There remains a slow market surrounding office assets and more selective lending criteria. Come 2024, we could see activity begin to pick up. Until then, lenders are very selective on taking on office projects.
*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.
Partner With Terrydale Capital for Your Debt Financing Needs
When it comes to debt financing, understanding the right timing, process, and options is crucial. At Terrydale Capital, we provide a comprehensive range of commercial loan solutions tailored to meet your business's unique needs.
Success!
Product has been created successfully!
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.
