May 31, 2016
Integra Realty Resources (IRR) released its Q1 2016 Interest Rate survey results from data collected nationally to break down the national lending picture by property type, loan size, geographic location, and the effects on CRE due to lenders’ characteristics.
With insight from 136 CRE lenders and underwriters collected between April 18 and May 6, respondents reported the maximum and minimum financing rate spreads (in basis points) over the 10-year Treasury rate for their deals completed in the previous 6 months.
- Multifamily: Multifamily Secondary Locations’ loans were issued at 7 bps higher than Multifamily Primary Locations (loans were issued at lower spreads on riskier deals).
- Office: Single Tenant Credit Office properties received lower spread loans compared to all other Office properties (except on deals with LTV of 50%-60%).
- Retail: Regional Malls and Outlet Centers experienced decreased spreads across all LTV bands.
- Industrial: Manufacturing properties received interest rate spreads at 15 bps higher than Distribution Warehouse properties.
- Hospitality: Luxury Properties had a median interest rate spread of 248 bps.
Stay tuned for IRR’s update to its Annual Viewpoint with the Mid-Year Report, scheduled for release in July 2016.