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Average commercial real estate loan rates vary by lender category, loan type, and market cycle — and a point-in-time rate quote is meaningful only against a benchmark. A 6.8% bank quote for a stabilized multifamily refi is competitive in May 2026; the same quote would have been expensive in 2021 and a bargain in late 2023. To know whether the rate you’ve been offered is good, average, or below market, you need to compare against the typical commercial mortgage rates for that loan type over a relevant time window.
This guide is the benchmark. Trailing-12-month average rates across the eight major lender categories, plus the 2022–2026 trend chart that contextualizes where rates sit historically. Use this page when you have a quote in hand and want to know whether to accept it, negotiate it, or walk.
For the current-month snapshot (vs. the trailing-12-month average shown here), see commercial mortgage rates today.
Trailing-12-Month Average Commercial Mortgage Rates
Rates as of May 2026 — verify current quotes with lenders before making decisions.
Aggregated from publicly available lender rate sheets and federal data (Federal Reserve, Mortgage Bankers Association), the trailing-12-month average commercial mortgage rates by lender category:
| Lender Type | Trailing-12-Mo Average | Current (May 2026) | Change |
|---|---|---|---|
| Life Insurance Companies | 5.9% | 5.8% | -10 bp |
| Agency Multifamily (Fannie/Freddie) | 5.9% | 5.9% | flat |
| HUD 223(f) Multifamily | 5.5% | 5.4% | -10 bp |
| Commercial Banks | 6.8% | 6.7% | -10 bp |
| Credit Unions | 6.8% | 6.7% | -10 bp |
| CMBS Conduit | 6.9% | 6.8% | -10 bp |
| SBA 504 (blended) | 6.4% | 6.3% | -10 bp |
| Debt Funds (SOFR + spread) | 8.4% | 8.2% | -20 bp |
| Institutional Bridge | 9.7% | 9.4% | -30 bp |
| Hard Money | 12.0% | 12.0% | flat |
Current rates sit roughly 10–30 bp below the trailing-12-month average across most lender categories — a modest tightening following the Federal Reserve’s late-2025 rate cuts. The lender categories that have moved most are bridge and debt-fund, where spreads have tightened with renewed appetite for transitional CRE.
How Rates Have Moved 2022–2026
The four-year arc of commercial mortgage rates tells a story most borrowers misremember:
2022 — Rate-Cycle Acceleration – Federal funds rate: 0.25% → 4.50% by year-end – Commercial bank rates: 4.5% → 6.5% (10-year fixed, stabilized commercial) – Bridge rates: 7.0% → 9.5% – Driver: Aggressive Fed tightening cycle to combat inflation.
2023 — Stabilization at Higher Levels – Federal funds rate: 4.50% → 5.50% (terminal rate) – Commercial bank rates: 6.5% → 7.5% – Bridge rates: 9.5% → 11.0% – Driver: Fed continued tightening through July 2023, then held.
2024 — Plateau and Early Cuts – Federal funds rate: 5.50% → 4.50% (three 25-bp cuts in late 2024) – Commercial bank rates: 7.5% → 7.0% – Bridge rates: 11.0% → 10.0% – Driver: Fed pivoted to cuts as inflation moderated.
2025 — Continued Easing – Federal funds rate: 4.50% → 4.00% (continued cuts) – Commercial bank rates: 7.0% → 6.8% – Bridge rates: 10.0% → 9.5% – Driver: Inflation closer to target; Fed signaled neutral policy stance.
2026 (YTD) — Plateau at Current Levels – Federal funds rate: 4.00% → 3.75% (one cut, October 2025; held through Q2 2026) – Commercial bank rates: 6.8% → 6.7% – Bridge rates: 9.5% → 9.4% – Driver: Fed pause; spreads modestly tightening on renewed CRE appetite.
The takeaway: rates are roughly 25–35% above 2021 levels but materially below 2023 peaks. For most asset classes and lender categories, May 2026 pricing is at the low end of the post-2022 range — though still wide of the 2019–2021 historical lows.
Average Rates by Loan Type — Deeper View
Multifamily Rates
Rates as of May 2026 — verify current quotes with lenders before making decisions.
The trailing-12-month averages on multifamily debt:
| Loan Product | TTM Average Rate | Term | LTV | Notes |
|---|---|---|---|---|
| Fannie Mae DUS | 5.9% | 10-yr fixed | up to 80% | Most active multifamily program |
| Freddie Mac Optigo | 5.8% | 10-yr fixed | up to 80% | Comparable to Fannie |
| HUD 223(f) | 5.5% | 35-yr fixed | up to 85% | Longest term, slowest close |
| HUD 221(d)(4) | 5.4% | 40-yr fixed | up to 87% | New construction or sub. rehab |
| Bank 5-yr fixed | 6.5% | 5-yr fixed | up to 75% | Relationship banking |
| Bridge (value-add) | 9.2% | 3-yr | up to 75% | Bridge to permanent |
Multifamily continues to price tightest of any commercial property type, because three agency programs (Fannie, Freddie, HUD) provide constant liquidity at low spreads.
Hospitality Rates
Rates as of May 2026 — verify current quotes with lenders before making decisions.
Hospitality TTM averages run wider than multifamily because lender appetite is thinner and RevPAR volatility increases conservatism:
| Loan Product | TTM Average Rate | Term | Notes |
|---|---|---|---|
| Bank / Life Co (flagged) | 7.5% | 7–10-yr fixed | Strong sponsor, performing |
| CMBS (flagged stabilized) | 7.6% | 10-yr fixed | Non-recourse |
| Bridge (flagged, PIP) | 10.0% | 24–36-mo | Renovation + lease-up |
| SBA 504 (owner-occupied) | 6.5% | 25-yr CDC fixed | Owner-operated |
| Construction (ground-up) | 10.8% | 24–36-mo | Brand + capital partner anchored |
For more on hospitality financing structure, see AVANA’s hospitality financing program.
Industrial and Warehouse Rates
Rates as of May 2026 — verify current quotes with lenders before making decisions.
| Loan Product | TTM Average Rate | Notes |
|---|---|---|
| Life Co (Class A logistics) | 5.8% | Trophy asset |
| Bank (stabilized) | 6.6% | Relationship driven |
| CMBS | 6.8% | Stabilized industrial |
| Debt Fund (value-add) | 8.5% | Lease-up or repositioning |
Office Rates
Rates as of May 2026 — verify current quotes with lenders before making decisions.
Office TTM averages have decoupled from other commercial property types since 2022, with material spread widening:
| Loan Product | TTM Average Rate | Notes |
|---|---|---|
| Life Co (Class A, leased) | 7.0% | Trophy assets only |
| Bank (stabilized) | 7.4% | Limited lender pool |
| CMBS | 7.6% | Risk-priced |
| Bridge (transitional) | 11.0% | Active workout segment |
Owner-Occupied Small Business CRE
Rates as of May 2026 — verify current quotes with lenders before making decisions.
| Loan Product | TTM Average Rate (Blended) | Notes |
|---|---|---|
| SBA 504 | 6.4% | 10% down, 25-yr CDC fixed |
| SBA 7(a) | 9.5% | Higher rate, more flexible structure |
| Bank (conventional owner-occupied) | 6.9% | Relationship-driven |
For more on SBA 504 program economics, see AVANA’s SBA 504 loan program.
How to Use Average Rates to Benchmark Your Quote
When you receive a commercial mortgage quote, run this check:
- Identify the lender category. Is the quote from a bank, life co, CMBS conduit, debt fund, bridge lender, or SBA partner?
- Look up the TTM average for that category. Tables above.
- Compare your quote to the TTM average.
- Quote is more than 50 bp inside the TTM average: aggressive pricing; likely a relationship deal or institutional sponsor on a clean asset. Accept.
- Quote is within ±25 bp of the TTM average: market pricing. Negotiate where applicable; otherwise accept.
- Quote is more than 50 bp above the TTM average: above market. Either the deal carries risk factors the lender is pricing, or you’re in the wrong lender category. Investigate before signing.
A spread between your quote and the TTM average tells you what the lender sees in your specific deal. If the spread is wider than expected, the underwriting evaluation is the place to dig — see what determines your commercial mortgage rate for the seven factors that drive spread.
How Average Rates Have Evolved by Lender Category
Three 4-year patterns are worth noting:
Banks have moved more than spreads. Bank rates rose ~225 bp from 2021 to peak, then settled at current levels. Most of the move was index (Treasury) — bank spreads themselves have stayed in a relatively tight band.
Bridge lender spreads have widened structurally. Bridge lender spreads above SOFR were 300–400 bp pre-2022; they’ve expanded to 350–600 bp at current levels. This reflects persistent caution on transitional CRE despite Fed cuts.
Agency multifamily spreads have stayed tightest. Through the entire 2022–2026 rate cycle, agency multifamily debt has maintained the tightest spread of any lender category — reflecting the structural advantage of the GSE guarantee. This is why multifamily continues to price 50–150 bp inside non-multifamily commercial regardless of macro environment.
Frequently Asked Questions
The Bottom Line
Trailing-12-month average commercial mortgage rates by lender category provide the benchmark that point-in-time quotes need. Current rates sit modestly below TTM averages across most categories, with the biggest moves in bridge and debt-fund product as transitional-CRE appetite has recovered. Multifamily continues to price tightest of any commercial property type, anchored by agency execution.
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