Commercial real estate financing is not one product — it is a spectrum of programs with dramatically different rates, terms, LTV limits, and qualification requirements. The right choice depends on your property type, hold period, sponsor experience, and capital structure. This guide compares every major CRE lending program available in 2026 with current rate ranges, so you can identify which options fit your deal before contacting a single lender.
1The CRE Rate Landscape at a Glance
| Program | Rate Range | Max LTV | Term | Best For |
|---|---|---|---|---|
| SBA 504 | Fixed, Treasury-based | 90% | 20-25yr | Owner-occupied CRE |
| SBA 7(a) | Prime + 2.25-3.0% | 85-90% | 25yr | Business acquisition with RE |
| Conventional Bank | 5.5-8.0% | 70-80% | 5-10yr | Stabilized, bankable borrowers |
| Conduit CMBS | 6.25-9% | 60-75% | 5/7/10yr fixed | Non-recourse, stabilized $2M+ (best pricing $10M+), 1.30-1.40x DSCR min |
| Agency (Fannie/Freddie) | 5.0-7.0% | 80% | 5-35yr | Multifamily ONLY |
| CMBS Bridge | 8.0-12%+ | 65-80% | 12-36mo | Value-add, repositioning, lease-up, transitional |
| Bridge (Non-CMBS) | 9.0-15%+ | 60-75% | 6-24mo | Speed, distressed, opportunistic, less experienced sponsors |
| DSCR | 6.5-9.5% | 65-80% | 30yr | Rental investors, no income docs |
| C-PACE | 6.0-9.0% | Up to 35% of value | 20-30yr | Energy/water improvements |
| Private Credit | 9.0-15%+ | 55-75% | 12-36mo | Complex deals, speed |
These ranges represent typical pricing for well-qualified borrowers with institutional-quality properties. Actual rates depend on property type, location, occupancy, sponsor experience, LTV, and DSCR. Best-case rates (especially CMBS at 6.25%) require experienced sponsors with 35-40%+ equity on stabilized trophy assets — most borrowers pay toward the middle or higher end of each range. CMBS conduit loans carry strict defeasance or yield maintenance prepayment provisions and are serviced by third-party special servicers, which limits flexibility if you need loan modifications.
2How Property Type Affects Your Rate
Lenders price risk by property type. Multifamily is the lowest risk (people always need housing). Hospitality is the highest (revenue volatility). Your property type determines which programs are available and at what spread.
Lower Risk / Better Rates
- • Multifamily (5+ units)
- • Industrial / warehouse
- • Self-storage
- • Medical office
- • Net-leased retail (credit tenant)
Higher Risk / Higher Rates
- • Hospitality / hotels
- • Retail (non-credit tenant)
- • Office (especially suburban)
- • Special use / single-purpose
- • Construction / ground-up
3The LTV-Rate Trade-off
In commercial real estate, more equity = better rate. This is not negotiable — it is structural. A 60% LTV CMBS loan prices tighter than a 75% LTV loan on the same property because the lender has 40% cushion before they lose money.
Same Property, Different Leverage:
- 60% LTV: Best rates, most lender competition, non-recourse available, longest terms
- 70% LTV: Moderate rates, still good options, some non-recourse available
- 75% LTV: Higher rates, fewer lenders, may require recourse or additional collateral
- 80%+ LTV: Limited to SBA 504 (owner-occupied), agency (multifamily), or mezzanine stack
Well-capitalized investors who can put 35-40% down unlock the entire lending market. If you are stretching to 80%+ LTV, your options narrow significantly and the rate premium reflects that.
4How PeerSense Gets You Competing Term Sheets
The biggest mistake CRE borrowers make is talking to one bank. Every program has different underwriting criteria, rate structures, and appetite for your specific deal. PeerSense submits your deal to multiple capital sources simultaneously — SBA, conventional, CMBS, and bridge — and lets you compare real term sheets, not hypothetical rate quotes.
We track lending patterns across 899+ SBA lenders and maintain relationships with CMBS conduits, bridge lenders, and private credit funds. One conversation with our team covers every option. No retainers. Referral fee established upfront, paid at closing.
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Tell us about your property — we will get you competing term sheets.
Tell Us About Your DealThe Bottom Line
Commercial real estate lending is a rate market — the borrower with the most options gets the best deal. Understanding which programs exist, what they cost, and when to use each one puts you in a position to negotiate from strength. The right capital source is not always the cheapest — it is the one that closes your deal on terms that match your hold period, exit strategy, and risk tolerance.