CRE Financing Rates Breakdown By Property Type | February 2024
Terrydale Capital
Feb 7, 2024 5 Min read
At Terrydale Capital, we actively generate quotes for a diverse range of commercial real estate assets, providing us with real-time insights into dynamic market shifts. In our commitment to securing the most competitive financing options for our clients, we have curated a comprehensive list of financing rates observed nationwide, tailored to specific asset types.
Multifamily
Rate Range: 5.53% - 10.25%
Quoted Average: 7.95%
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. As we continue forward in the year, investors should keep an eye out on the large amount of distressed multifamily properties in the market.
Industrial
Rate Range: 7.50% - 8.50%
Quoted Average: 7.75%
As we persist in quoting on industrial investments, there has been a decline in average interest rates associated with this asset. Credit unions and banks have consistently offered some of the most competitive rates in this market segment.
Self-Storage
Rate Range: 7.75% - 8.50%
Quoted Average: 8.12%
Much like industrial investments, we have seen a small average dip in overall interest rates, which have been primarily coming from banks and credit unions.
Retail
Rate Range: 6.75% - 9.00%
Quoted Average: 8.06%
Over the last month of quoting, we have seen a notable drop in average interest rates regarding retail assets. By placing increased emphasis on tenancy and adopting a more localized approach to projects, we have identified credit unions and banks as the most competitive channels for retail endeavors.
Land
Rate Range: 9.50% - 10.50%
Quoted Average: 10.00%
Continuing from 2023 into the new year, many traditional lenders exhibit a preference for developmental land, while maintaining caution towards speculative projects. This stringent criteria has resulted in higher overall rates and a reduced pool of willing lenders.
Single Family Portfolio
Rate Range: 7.75% - 11.00%
Quoted Average: 9.38%
Much like in the multifamily sector, agency loans continue to be primary contenders for both individual and portfolio projects. Additionally, HUD options consistently showcase notable competitiveness in this context.
Data Center
Rate Range: 7.55% - 11.00%
Quoted Average: 9.55%
An emerging asset class in 2023, data centers are poised to experience a significant influx of investment activity in 2024. We strongly advise investors looking to diversify their portfolios to carefully consider and explore opportunities in the data center sector as they arise.
Office
Rate Range: 9.00% +
Quoted Average: 9.00%
Despite the abysmally slow lending activity for office assets in 2023, there are signs of a modest awakening in lenders providing office loans. However, those lenders who are participating remain very strict in their underwriting requirements.
*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.
