CMBA 2024: Key Takeaways

3yr – 30yr fixed rate options with IO available and varying prepay flex structures.
Max LTV constrained by achieving at least a 1.30x DSCR on a 30yr am, except for deals with significant upside to rents.
3yr fixed rate bridge and floating rate bridge offered for multifamily, industrial & retail.
Construction and construction to perm for multifamily, industrial, and grocery-anchored retail.

Industrial (Distribution/Logistics)	1.35% - 1.90%	Single-tenant Retail	2.40% - 2.75%
Flex/Light Industrial	1.65% - 2.10%	Self-storage	1.65% - 2.10%
Grocery or IG Credit-anchored Retail	1.35% - 1.90%	Office	2.75% - 3.25%
Strip/Shadow-anchored Retail	1.90% - 2.50%	Multifamily	1.20% - 1.80%
Big Box Retail	2.20% - 2.50%	MHC	1.65% - 2.10%

Debt funds are winning bridge and construction business from banks due to their strong lending appetite and availability of no-strings-attached liquidity.
18–36-month terms with extensions.

Multifamily	2.25% - 3.25%	Grocery or IG Credit-anchored Retail	3.00% - 4.25%
Industrial	2.50% - 3.75%	Other Retail	3.75% - 5.00%
Self-Storage	3.25% - 4.75%	Office	5.50%+

Banks are generally risk-off on real estate lending and mostly focused on deposits.
Most banks exclusively offer floating-rate debt to mitigate fixed rate balance sheet risk.
Banks are still not competing on perm debt. The lowest perm bank spread starts at 2.25% over USTs
or Swaps
Banks are competitive on floating rate construction and bridge debt in exchange for a sizeable deposit
relationship. The best pricing starts at SOFR+2.00%.
Credit Unions remain active with a wide range of spreads between 2.50% - 3.50% over the corresponding UST.

CMBS’ rate buy-down features are being used as a tool to enhance loan proceeds on rolling bridge loan
originated in 2021-2022.
Spreads have widened in recent weeks and generally remain greater than 2.50% over USTs (or Swaps) unless a rate buy-down is purchased by borrower.

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