Commercial Mortgage Rates Guide
Commercial mortgage pricing is a function of market indexes, lender credit spreads, and deal-specific risk—not a single published consumer rate.
Indexes and spreads
Floating-rate loans often reference SOFR or another short-term benchmark plus a credit spread. Fixed-rate loans may price off Treasury or swap curves for the matched term.
Spreads compensate lenders for credit, liquidity, and servicing risk. Stronger sponsorship, lower leverage, and durable cash flow typically compress spreads.
Deal-level pricing factors
Property type, market liquidity, occupancy, lease term, recourse, and prepayment flexibility all influence the final coupon. Hospitality and transitional office often price wider than stabilized multifamily.
Look beyond the headline rate
Origination fees, third-party reports, reserves, and prepayment penalties affect true cost of capital. Compare offers on an all-in basis aligned to your hold period.
Educational content only. Not legal, tax, or lending advice. Not a loan offer.
