Commercial real estate loan rates are a public index plus a lender's spread, so this page is built around a dated rate tape instead of a fixed range for the whole year. The September 2026 update reflects the Federal Reserve's September 16, 2026 decision to raise its target range. Spreads and coupons discussed here are illustrative; only a term sheet is a quote.
Rate tape as of September 29, 2026 (each figure on its own observation date, from FRED and the Federal Reserve):
- SOFR: 3.90% (September 28, 2026)
- 30-day average SOFR: 3.73909% (September 29, 2026)
- 5-year Treasury: 4.98% (September 25, 2026)
- 10-year Treasury: 5.17% (September 25, 2026)
- Bank prime loan rate: 7.00% (September 25, 2026)
- Federal funds target range: 3.75% to 4.00% (September 29, 2026)
- Last FOMC decision: September 16, 2026, when the Committee decided "to raise the target range for the federal funds rate by 1/4 percentage point to 3-3/4 to 4 percent"
- Page updated: September 30, 2026
What are commercial real estate loan rates right now?
Commercial real estate loan rates in late September 2026 start from an index, most often SOFR at 3.90% on September 28 or the 10-year Treasury at 5.17% on September 25, and each lender then adds a spread for property type, leverage and cash-flow coverage. The index is public; the spread is where lenders compete.
Floating-rate loans, such as bridge and most construction debt, reset over SOFR or prime. Fixed-rate permanent loans, such as agency multifamily, CMBS and life-company debt, lock over a Treasury yield or a swap rate of similar term. That 10-year Treasury reading is above every daily value FRED published for 2019 through 2021, so a fixed-rate loan originated then and refinancing now starts from a higher base.
Who you borrow from matters as much as the index: banks, agency lenders, debt funds and life companies price the same deal differently, and a brokerage exists to surface that difference. Track the benchmarks on the rates page, then submit your deal once to see what competing lenders actually quote. YieldStack is a commercial mortgage brokerage, not a lender.
Which lender and index price each property type?
Each commercial property type has a usual set of lenders and a usual index, and the spread each lender adds depends on the risks that property type carries, such as lease rollover for office or operating volatility for hotels. The table maps those patterns; the numbers that change monthly are the index values in the rate tape above.
| Property type | Typical lender | Index | What moves the spread |
|---|---|---|---|
| Multifamily (stabilized) | Agency (Fannie Mae, Freddie Mac) lenders, banks, life companies, HUD | Treasury yield (fixed); SOFR (floating) | DSCR, LTV, occupancy, sponsor experience |
| Industrial and warehouse | Banks, life companies, CMBS | Treasury or swap (fixed); SOFR or prime (bank floating) | Tenant credit, remaining lease term, LTV |
| Retail | Banks, CMBS, life companies for anchored centers | Treasury or swap (fixed); SOFR or prime (bank floating) | Anchor strength, lease rollover, tenant mix |
| Office | Banks, CMBS, debt funds | Treasury or swap (fixed); SOFR (floating) | Occupancy, lease rollover, lender appetite for office |
| Self-storage | Banks, CMBS, life companies | Treasury or swap (fixed); SOFR (floating) | Occupancy trend, operating history, local supply |
| Hospitality | Banks, CMBS, debt funds | SOFR (floating); Treasury or swap (fixed) | Operating history, brand, revenue volatility |
| Owner-occupied (any type) | Banks, SBA 504 and 7(a) lenders | Prime (bank and most SBA 7(a)); SBA debenture rate (504 portion) | Business cash flow, owner-occupancy share, collateral |
| Transitional or value-add | Debt funds, bank bridge lenders | SOFR (floating) | Business plan, as-is versus stabilized value, exit |
| Ground-up construction | Banks, debt funds | SOFR or prime (floating) | Sponsor equity, pre-leasing, completion risk |
Lender types, indexes and spread drivers are general patterns, not quotes; your term sheet sets the actual index, spread and any floor. For how each lender type underwrites, see types of commercial real estate lenders.
What moves the rate between lenders on the same deal?
Two lenders quoting the same loan on the same property can differ on rate because each prices its own cost of capital, risk appetite and relationship value into the spread over a shared index. Leverage, debt service coverage, market, asset class and deal size are the underwriting levers that widen or tighten that spread for every lender.
Lender type: Life companies have the lowest spreads but the most conservative underwriting. Banks are middle-of-road on both. Debt funds and non-bank lenders have higher spreads but more flexible underwriting.
LTV: Pricing is sensitive to leverage. The same lender will usually quote a tighter spread on a lower-LTV version of the same deal, because more equity sits ahead of its loan.
DSCR: A deal whose cash flow covers debt service with room above the lender's minimum ratio prices tighter than one that barely clears it, all else equal.
Market: Primary metro markets typically price tighter than secondary and tertiary markets, where fewer lenders compete for the same loan.
Asset class: Multifamily prices tightest. Industrial and self-storage are close behind. Retail and office carry higher spreads due to perceived risk.
Relationship and deal volume: Lenders price more competitively for repeat borrowers and for larger deals. First-time borrowers and smaller deals pay a relationship premium.
How do you get the best commercial real estate loan rate?
The single most effective way to get the best commercial real estate loan rate is to generate simultaneous competing term sheets from multiple lenders. Lenders know they're competing and price more aggressively. A borrower with five term sheets has leverage that a borrower approaching one lender at a time never gets.
How YieldStack Fits Into Rate Shopping
YieldStack matches your deal against 20,000+ loan programs and returns 5–8 matches, so one submission replaces calling lenders one at a time.
The bankability pre-screen also helps: by identifying how lenders will underwrite your deal before outreach, you can address structural issues that are causing rate penalization (too-high LTV, occupancy shortfall, lease rollover risk) before term sheets come in.
Fees: Zero upfront; the broker fee is 0.50–1.00% of the loan amount, paid only at closing. On a $5M deal at 0.75% that is $37,500; for scale, a 15 bps rate difference on the same $5M loan is $7,500 per year of the hold.
What changed in commercial real estate rates this month?
The main change in September 2026 was the Federal Reserve's September 16 decision to raise the federal funds target range by a quarter point to 3.75% to 4.00%, and both SOFR and the bank prime rate stepped up on September 17. Fixed-rate loans price off Treasury yields, which move separately and were not set by that decision.
- Floating-rate loans (bridge, construction, bank lines): reset over SOFR or prime, so a rise in the index raises the coupon at the next reset unless a purchased rate cap limits it. For the carry math on a bridge hold, see bridge loan rates and carry cost.
- 30-day average SOFR: 3.73909% on September 29, 2026, below the new range's 3.75% lower bound because its window still includes days before the hike. Loans set on the average catch up as that window rolls forward.
- Fixed-rate loans (agency, CMBS, life company): lock over Treasury yields; the 5-year was 4.98% and the 10-year 5.17% on September 25, 2026.
- No forecast: this page records where the benchmarks were on the dates shown. It does not predict the next move.
The Bottom Line
Commercial real estate loan rates are an index plus a spread: the index is on the dated tape above, and the spread is what lenders compete on. YieldStack creates that competition from one submission, matched against 20,000+ loan programs. For any deal where rate matters (which is every deal), competition is the lever that moves your quote.
How do you put lenders in competition for your deal?
You put lenders in competition for your deal by sending one complete file to several lenders whose programs fit it, in the same pricing window, rather than one at a time. YieldStack matches your deal against 20,000+ loan programs with Zero upfront; the broker fee is 0.50–1.00% of the loan amount, paid only at closing.
Every credit decision is made by the lender; YieldStack arranges the introductions and negotiates on the borrower's side, and no loan, rate, or closing is guaranteed.