CRE Financing Rates Breakdown By Property Type | January 2024
Terrydale Capital
Jan 10, 2024 4 Min read
At Terrydale Capital, we actively provide quotes for a diverse range of commercial real estate assets, allowing us to gain real-time insights into the dynamic market shifts. In our pursuit of the most competitive financing options for our clients, we've curated a comprehensive list of financing rates observed nationwide, customized to specific asset types.
Multifamily
Rate Range: 6.45% - 13.00%
Quoted Average: 8.11%
At the outset of 2024, 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. As we move forward in the year, investors should keep an eye out on the large amount of distressed properties in the market.
Industrial
Rate Range: 7.50% - 8.50%
Quoted Average: 8.04%
As we continue to quote on industrial investments, we have seen a dip in average interest rates regarding the asset. Credit unions and banks have continued to provide some of the most competitive rates.
Self-Storage
Rate Range: 7.75% - 8.50%
Quoted Average: 8.15%
Much like industrial investments, we have seen a dip in overall interest rates, especially those coming from banks and credit unions.
Retail
Rate Range: 9.00% - 10.51%
Quoted Average: 9.57%
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%
Carrying over from 2023 into the new year, many traditional lenders have become more preferable towards developmental land and remain reserved when it comes to speculative projects. This strict criteria has, in turn, leads to higher overall rates.
Single Family Portfolio
Rate Range: 7.75% - 11.00%
Quoted Average: 9.38%
Similar to multifamily, agency loans remain leading contenders for both individual and portfolio projects. Furthermore, HUD options still consistently demonstrate notable competitiveness in this context.
Data Center
Rate Range: 7.55% - 11.55%
Quoted Average: 9.55%
An emerging asset class in 2023 that is poised to see a large influx of investment activity in 2024. We advise investors seeking to diversify to take a very close look at data center opportunities as they arise.
Office
Rate Range: 9.00% +
Quoted Average: 9.00%
While 2023 was marred by abysmally slow lending activity for office assets, we are starting to see a small awakening in lenders providing office loans. However, lenders that do remain very strict on 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.
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.
