CRE Financing Rates Breakdown By Property Type | March 2024
Terrydale Capital
Mar 5, 2024 5 Min read
At Terrydale Capital, we proactively generate quotations for a diverse array of commercial real estate assets, enabling us to gain real-time insights into evolving market trends. As part of our dedication to securing the best financing solutions for our clients, we've meticulously compiled an extensive range of financing rates observed across the nation, customized to suit various asset categories.
Multifamily
Rate Range: 5.53% - 12.50%
Quoted Average: 8.48%
As we progress into 2024, agency options persist in leading the market by offering exceptionally competitive rates, with some options even reaching lows below 6%. HUD options continue to demonstrate resilience, particularly in the realm of asset refinancing. Looking ahead, investors would be wise to monitor the considerable presence of distressed multifamily properties in the market throughout the year.
Industrial
Rate Range: 7.50% - 8.50%
Quoted Average: 7.83%
As we continue to provide quotes for industrial investments, we've observed a decline in average interest rates associated with this asset class. Credit unions and banks have remained steadfast in offering some of the most competitive rates within this market segment.
Self-Storage
Rate Range: 7.75% - 8.50%
Quoted Average: 8.12%
Similar to industrial investments, we've observed a slight average decrease in overall interest rates, largely originating from banks and credit unions. As growth continues to surge, experts are pointing towards a cooling in development of new facilities after 2025.
Retail
Rate Range: 6.75% - 7.25%
Quoted Average: 6.92%
In the past month of quoting, we've witnessed a significant decrease in average interest rates concerning retail assets. By prioritizing tenant quality and implementing a more localized strategy for projects, we've pinpointed credit unions and banks as the most competitive avenues for retail ventures. Additionally, many lenders have been very preferential to anchored retail assets.
Land
Rate Range: 9.50% - 10.50%
Quoted Average: 10.00%
Building on the trends observed in 2023, as we transition into the new year, many traditional lenders continue to favor developmental land investments while exercising heavy caution with speculative projects. This stringent criteria has led to higher overall rates and a diminished pool of willing lenders.
Single Family Portfolio
Rate Range: 7.75% - 11.00%
Quoted Average: 9.38%
Similar to the multifamily sector, agency loans remain prominent contenders for both individual and portfolio projects. Furthermore, HUD options consistently demonstrate notable competitiveness within this context.
Data Center
Rate Range: 7.55% - 11.00%
Quoted Average: 9.55%
An emerging asset class in 2023, data centers are positioned to undergo a notable surge in investment activity in 2024. We strongly encourage investors seeking portfolio diversification to meticulously evaluate and pursue opportunities in the data center sector as they emerge.
Office
Rate Range: 9.00% +
Quoted Average: 9.00%
Despite the abysmally slow lending activity for office assets in 2023, there are indications of a modest revival in lenders offering office loans. However, those lenders who are engaging in this market remain exceedingly stringent 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.
