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Writer's pictureCommCap Advisors

Commercial Lending Loan Spread Rate Update - January 9, 2025

Commercial lending loan spreads July 2024

 

As we enter 2025, there is growing optimism in the commercial real estate markets that transaction volumes will rebound. While this is a hopeful prospect for the new year, rising capital costs could pose a significant challenge. The 10-Year U.S. Treasury yield has returned to near its 2024 highs at 4.66%, driven by concerns over persistently high inflation and uncertainties surrounding the incoming Trump administration. Additionally, in its final meeting of 2024, the Federal Reserve revised its outlook, now projecting two 25-basis-point rate cuts instead of the four anticipated earlier in the year.


As yields fluctuate, "current rates" quickly become obsolete. However, spreads remain applicable and fitting to deal characteristics. Though rates are important, having a well articulated and defined debt plan matching your long-term investment plan is vital. The experts at CommCap are here to help you understand goals and navigate the current market providing access to multiple lending sources, early rate-locks, cash out refinancing, and more.

Commcap team
 

As your exclusive advisors, CommCap utilizes proprietary systems, market expertise, and years of experience to secure aggressive financing options that best fit your property. Exclusive correspondent and servicing relationships with Life Insurance Company, CMBS, and Agency lenders ensure a broad and in-depth representation of current market conditions. Our team of advisors craft a loan structured to enhance revenue and allow you to focus on increasing cash flow.


We do not list, sell, manage, or lease property. We only arrange financing and are the best at what we do.

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