Borrowers Find Relief as Benchmark Rates Decline

Data from Altus Group’s fourth quarter 2025 survey of commercial real estate (CRE) borrowers and lenders reveal mixed signals about the current state of the debt market. Benchmark interest rates fell further across the curve, but fixed-rate spreads widened modestly, resulting in flat to slightly higher all-in costs for fixed-rate loans. Floating-rate borrowers, however, continued to benefit from a decline in the Secured Overnight Financing Rate (SOFR), extending a trend that began when the Federal Reserve started cutting rates in late 2024. Survey results also indicate continued spread discipline among lenders and meaningful rate relief for borrowers, particularly those seeking shorter term and floating-rate financing.

The full report provides data on quoted interest rates by property type, loan type, maturity and loan-to-value ratio, including for both senior debt and mezzanine loans.  

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