The quick read: Banks and non-bank lenders, including lenders that fund transitional loans through commercial real estate CLOs, make bridge loans on retail, office and industrial property; life insurance companies, CMBS conduits and banks make the permanent loans that repay them. Industrial draws the most CLO-funded bridge capital of the three by far: in Trepp data reported by CRE Daily on March 11, 2026, industrial was 11.2% of 2026 CRE CLO collateral, against 2.8% for office and 2.1% for retail.
This guide answers a narrower question than a bridge-lender shortlist: which lender types lend on each non-multifamily property type, how leverage and pricing differ, and which exit each bridge assumes. For how to compare two bridge quotes, see how to compare the best bridge loan lenders; for how the product works, see the commercial bridge loan guide.
Which lender types make bridge loans on retail, office and industrial buildings?
Banks lending from their own balance sheets and non-bank lenders, including those that package transitional loans into commercial real estate CLOs, make bridge loans on retail, office and industrial buildings. Life insurance companies, pension funds, CMBS conduits and banks make the permanent loans that repay a bridge once the property stabilizes or sells.
The OCC's Comptroller's Handbook on commercial real estate lending (Version 2.0, March 2022) defines a bridge loan as short-term financing that lets newly constructed or acquired commercial properties reach stabilization. It says permanent financing often comes, in addition to banks, from life insurance companies, pension funds and CMBS, usually for 10 years or more at fixed rates and commonly nonrecourse.
- Typical bridge term (OCC Comptroller's Handbook, March 2022): up to three years
- Bridge exit (same source): a sale or qualification for permanent financing
Banks remain the biggest source. The FDIC's 2026 Risk Review (April 22, 2026) says banks remained the largest source of CRE financing in 2025, while private credit, still small relative to bank and CMBS financing, reached an estimated $300 billion through the first half of 2025. In the Federal Reserve's April 2026 Senior Loan Officer Opinion Survey, the most widely reported CRE policy changes over the past year were higher maximum loan sizes, narrower spreads over the bank's cost of funds and longer interest-only periods, and the most cited reason for easing was more aggressive competition from other banks or nonbank lenders.
What leverage and pricing do bridge and takeout lenders publish for each property type?
Public, dated figures exist for bank leverage ceilings, for the blended pricing of non-bank bridge loans in recent CRE CLOs, and for the permanent loans that repay a bridge on each property type. No public source cited here publishes bridge leverage by property type, so the tables below mark that gap instead of filling it.
Table 1: Bridge and takeout lender types for retail, office and industrial property (figures dated)
| Lender type | Role | Leverage reference | Pricing reference | Source and date |
|---|---|---|---|---|
| Lender type Bank, balance sheet | Role Makes the bridge; can also make the permanent loan | Leverage reference Internal LTV limits should not exceed 85% for improved property, which includes completed commercial property, or 80% for commercial construction, which the rule defines to include rehabilitating a building | Pricing reference No published bridge spread; bank prime loan rate 7.00% as of September 21, 2026 | Source and date 12 CFR 34, Appendix A to Subpart D (eCFR, up to date as of September 22, 2026); FRED, DPRIME |
| Lender type Non-bank lender funding through a CRE CLO | Role Makes the bridge | Leverage reference Not published by property type in the CLO data cited here | Pricing reference 303 bps over SOFR weighted average, with a weighted-average coupon near 6.68%, across 160 loans in recent CRE CLOs, 79.8% of them apartments by balance | Source and date CRED iQ via Commercial Observer, July 27, 2026 |
| Lender type Life insurance company | Role Makes the takeout | Leverage reference 50% to 65% LTV on 10-year quotes | Pricing reference Roughly 170 bps on those 10-year quotes | Source and date CRED iQ via Commercial Observer, April 20, 2026 |
| Lender type CMBS conduit | Role Makes the takeout | Leverage reference Blended conduit LTV of 55.6% (September 2026) | Pricing reference Near 250 bps over the benchmark on 10-year loans (April 2026) | Source and date CRED iQ via Commercial Observer, September 21, 2026 and April 20, 2026 |
Table 2: Retail, office and industrial compared on the numbers that size a bridge and its exit
| Measure (source, date) | Industrial | Retail | Office |
|---|---|---|---|
| Measure (source, date) Share of 2026 CRE CLO collateral (Trepp, reported March 11, 2026) | Industrial 11.2% | Retail 2.1% | Office 2.8% |
| Measure (source, date) Share of CRED iQ's July 2026 CRE CLO sample | Industrial 5.2% | Retail Roughly 1% or less | Office Roughly 1% or less |
| Measure (source, date) Permanent-loan spread over the 10-year Treasury at 60–65% LTV (CRED iQ, March 31, 2026) | Industrial 162 bps | Retail 176 bps | Office 220 bps |
| Measure (source, date) Conduit CMBS leverage (CRED iQ, September 2026) | Industrial LTV down 10 points from a year earlier | Retail 47.8% LTV, 20.3% debt yield | Office 49.5% LTV, 1.94x DSCR |
| Measure (source, date) CMBS delinquency rate (Trepp, July 2026) | Industrial 1.13% | Retail 6.96% | Office 11.91% |
| Measure (source, date) Q2 2026 originations vs. a year earlier (MBA) | Industrial Up 6% | Retail Up 61% | Office Up 47% |
Table 2 sources: Trepp data via CRE Daily, March 11, 2026 and MBA NewsLink, August 11, 2026; CRED iQ data via Commercial Observer (July 27, April 20 and September 21, 2026); MBA, August 6, 2026. The CLO rows are shares of the collateral each publisher measured, not market-wide bridge volume; the spread row describes permanent loans, not bridge coupons; and the MBA row counts all commercial originations, not bridge loans alone.
Why does industrial look like the easiest bridge to place and office the hardest?
Industrial looks like the easiest of the three property types to place on a bridge loan on two indirect signals, not a placement statistic: it holds the largest share of recent CRE CLO collateral among the three and the tightest permanent takeout spread, while office carries the widest takeout spread and the highest CMBS delinquency rate of the three.
CRED iQ ties that gap to credit. In its April 20, 2026 analysis in Commercial Observer, it said its delinquency and special servicing data continue to show elevated distress in the office sector, that lenders are pricing that credit risk into spreads even on well-underwritten permanent loans, and that retail and industrial have converged closer to multifamily because credit performance there has stayed comparatively stable. Trepp's July 2026 CMBS figures, published by MBA NewsLink on August 11, 2026, show the same order: office delinquency at 11.91%, retail at 6.96% and industrial at 1.13%.
The non-bank lender's own funding matters too. The FDIC's 2026 Risk Review says banks provide liquidity and leverage to nonbanks, a group that includes private credit funds and real estate investment trusts, and bank loans to them totaled $1.4 trillion at the end of 2025. Banks in the Fed's July 2026 survey put their standards for all queried types of those loans at the tighter ends of their historical ranges. Ask a non-bank lender whether its funding source, whether a CRE CLO, a bank credit line or its own fund, takes your property type.
Who makes bridge loans on office buildings in 2026?
Office bridge loans come from banks and a thin slice of non-bank capital: office was 2.8% of 2026 CRE CLO collateral in Trepp's data, down from 14% in 2021, and roughly 1% or less of CRED iQ's July 2026 sample. Office lending overall is rising, with originations up 47% year over year in the second quarter.
The Mortgage Bankers Association's August 6, 2026 release put second-quarter office originations up 47% from a year earlier and 23% from the first quarter, and MBA described office lending as strong. That volume is not bridge-specific, and office remains the hardest takeout of the three. CRED iQ tracked 60–65% LTV permanent office loans at 220 bps over the 10-year Treasury on March 31, 2026, 58 bps wider than industrial. Conduit office loans in its September 2026 data carried a 49.5% LTV and a 1.94x DSCR, and its September 8, 2026 update said office and mixed-use loans maturing over the next nine months were pricing 170 to 180 bps above their in-place notes, the widest refinancing gap of any property type.
Office also carries the weakest occupancy: the FDIC's 2026 Risk Review put office vacancy at 14.0% at year-end 2025, the highest of the four major property types. The OCC's handbook lists the costs an office bridge budget carries: lease terms typically run three, five or seven years, leasing commissions are typically underwritten at 4% of total lease payments for new leases and 2% for renewals, and tenant improvements cost more for new tenants than for renewing ones. Ask whether those costs come from the loan or your equity. For permanent office terms by lender type, see what loan terms you can get on an office building in 2026.
Who makes bridge loans on retail property?
Retail bridge loans come from banks and a small non-bank pool: retail was 2.1% of 2026 CRE CLO collateral in Trepp's data and roughly 1% or less of CRED iQ's July 2026 sample. The retail takeout is available but asks for more equity, with conduit retail leverage down 10.2 points to a 47.8% LTV.
Retail was the fastest-growing property type in MBA's second-quarter 2026 originations, up 61% from a year earlier, and CRED iQ's 60–65% LTV permanent retail spread tightened 17 bps, from 193 bps in late April 2025 to 176 bps on March 31, 2026. The equity ask comes from the conduit side: in CRED iQ's September 2026 conduit CMBS data, retail's LTV fell 10.2 points to 47.8% while its debt yield rose 8.1 points to 20.3%, and CRED iQ said issuers are structuring deals that require meaningfully more sponsor equity than a year earlier. The FDIC's 2026 Risk Review said retail vacancy remained the lowest of the four major property types at year-end 2025.
The OCC's handbook names what a retail lender reads: whether the center is anchored or unanchored, lease terms that typically range from five to 10 years with anchor tenants often signing 20 to 25 years, co-tenancy clauses that can cut rents or permit termination if an anchor stops operating, and environmental risk from gas station and dry-cleaning activities. Ask each bridge lender how it underwrites a departing anchor and any co-tenancy exposure before it quotes.
Who makes bridge loans on industrial property?
Industrial bridge loans draw the broadest lender interest of the three property types: industrial was 11.2% of 2026 CRE CLO collateral in Trepp's data and 5.2% of CRED iQ's July 2026 sample, and its 60–65% LTV permanent takeout priced at 162 bps over the 10-year Treasury on March 31, 2026, the tightest of the three.
Industrial also has the cleanest credit record of the three, with Trepp's industrial CMBS delinquency rate down seven basis points to 1.13% in July 2026. It is not frictionless. CRED iQ said industrial lagged the spread tightening over the year to March 31, 2026, narrowing 12 bps from 174 bps, and its September 2026 conduit data showed industrial leverage down 10 points as issuers asked for more sponsor equity. MBA's second-quarter 2026 release put industrial originations up 6% from a year earlier.
The OCC's handbook lists the physical tests an industrial lender applies: proximity to transportation, ceiling heights that usually range from 18 to 30 feet, sufficient truck bays on a site large enough to maneuver large trucks, electrical capacity and floor thickness. It flags two traps: industrial buildings with a higher share of office space, sometimes 50% or more, share many characteristics with office properties, and industrial properties as a group pose the highest risk of environmental contamination. For multi-tenant buildings the same handbook says lease terms of three to five years are common, so a lease-up bridge request should show every rollover date. For the flex end of the market, see how to finance a small-bay flex industrial building.
What exit does each bridge lender assume, and what does it cost today?
Every bridge lender on retail, office or industrial property assumes one of two exits, a sale or a permanent loan once the property stabilizes, so the permanent loan's size and price decide whether the bridge can be repaid; if the takeout will be smaller than the bridge balance, the difference is equity you bring at the refinance.
Takeout and rate references, dated:
- Life company 10-year quotes (CRED iQ via Commercial Observer, April 20, 2026): roughly 170 bps at 50% to 65% LTV
- CMBS conduit 10-year pricing (same source): near 250 bps over the benchmark
- 10-year Treasury (FRED DGS10, as of September 22, 2026): 4.96%
- SOFR (FRED, as of September 23, 2026): 3.87%
- Bank prime loan rate (FRED DPRIME, as of September 21, 2026): 7.00%
- Federal funds target range (Federal Reserve, September 16, 2026): 3-3/4 to 4 percent, after a 1/4 percentage point increase
Two cautions follow. A non-bank bridge that floats over SOFR and a takeout priced over the 10-year Treasury move on different benchmarks, so ask each lender to show the exit at a higher 10-year yield than the one on your closing date. And the property-type spreads in Table 2 describe 60–65% LTV permanent loans, while CRED iQ's conduit data put office at 49.5% and retail at 47.8% LTV, so a takeout sized below your bridge balance leaves a gap that equity has to fill.
How do you get lenders competing for a retail, office or industrial bridge loan?
You get lenders competing for a retail, office or industrial bridge loan by giving every lender type the same complete file at once, with rent roll, leases, business plan, capital budget and expected takeout, so their terms compare side by side. A commercial mortgage brokerage is one route; approaching each lender type directly is another.
YieldStack is a commercial mortgage brokerage. It costs Zero upfront to submit a deal and review offers; YieldStack's broker fee is 0.50–1.00% of the loan amount and is 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.
Submit your retail, office or industrial bridge request with the property type, current occupancy, business plan and the exit you expect, so each lender type responds to the same file.
The bottom line
Banks and non-bank lenders, including those that fund through CRE CLOs, make bridge loans on retail, office and industrial property, and life companies, CMBS conduits and banks make the permanent loans that repay them. Property type decides how many show up: industrial draws the most, while retail and office each draw banks and a thin non-bank pool, retail's takeout asks for more equity, and office faces the widest takeout spread. Size any bridge to the permanent loan that will repay it.