Lenders want to make commercial real estate loans. They just want to be paid more to make them and they’re pricing their loans on the assumption that rates will stay high.

That’s the main finding of a third-quarter report from the Commercial Real Estate Development Association, based on data and analysis from Altus Group. Survey participants reported 1,577 loan quotes in Q3. That’s up 13% from 1,396 in the second quarter and 18% above the 1,337 quotes recorded in Q3 2025. Quote volume rose even as Treasury yields climbed and spreads widened on most loan products.

The report called the growth in quotes its “most encouraging signal.” Financing is available across property sectors, but lenders expect higher benchmark rates to persist and are pricing loans that way. The report suggests that owners with loans maturing in the next 18 months may do better by locking rates now than by waiting for a Federal Reserve cut this year or next.

Fixed-rate mezzanine debt had the sharpest increase, with spreads up 88 basis points. Spreads on long-term fixed-rate senior loans rose 18 basis points on lower-leverage deals and 42 basis points on higher-leverage deals. Floating-rate senior spreads widened 18 basis points in both leverage tiers.

The one product that held steady was short-term fixed-rate senior debt. Its spreads were roughly flat, slipping 2 basis points on lower-leverage loans and 9 basis points on higher-leverage loans.

Short-Term Floating Debt Leads The Mix

Short-term floating-rate senior loans were the largest category by far, at 39% of all quotes. Their share rose 6 percentage points from Q2 and 1 point from a year earlier.

Most of that gain came out of fixed-rate debt. Short-term fixed senior loans made up 23% of quotes, down 5 points from Q2 and flat from a year earlier. Long-term fixed senior loans accounted for 16%, down 2 points from the prior quarter but up 2 points year-over-year.

Among the smaller categories, fixed-rate mezzanine reached 7%, up 2 points from Q2. Floating-rate mezzanine held at 7%. Floating repo and facility lending fell 1 point to 5%. Fixed preferred equity stayed at 3%, unchanged from Q2 but down 4 points from a year earlier.

Construction Gains As Office Slips

Construction had the biggest change by property type. Its share of quotes rose from 13% in Q2 to 17% in Q3, and it was also higher than a year earlier.

Office lost the most ground, falling from 25% of quotes to 21%. The full decline came from non-trophy office assets, which dropped from 18% to 15%. Trophy office itself held at 6%.

Retail still drew the largest share of quotes at 25%, down slightly from 26%. Industrial rose to 21% from 19%. Apartments were unchanged at 17%.

Rates Keep Climbing Into The Fourth Quarter

Since the quarter ended, rates have moved higher. As of Nov. 12, the 10-year Treasury yield had rebounded sharply to 5.10% after recently falling below 5%. The 5-year yield was at 4.95%, well above its Q3 average.

If yields keep rising, financing costs could change significantly from the levels in the report. That adds weight to the report’s advice for owners facing near-term maturities. Lenders are still quoting deals in every sector, but they don’t expect lower rates and borrowers who wait for a Fed cut could end up paying more.