July 31, 2017

Current Market Interest Rates – July 2017

Interest rates on bank-quality commercial real estate loans increased forĀ all property types except retail in July 2017. Rates remain slightly below their marks from a year ago, reflecting a positive, yet measured view on the economy and commercial real estate generally. The benchmark 10-year Treasury Bond was flat month-over-month, indicating lenders slightly increased credit-spreads during the period. Other benchmark interest rates are available from the Wall Street Journal.

Collateral TypeChangeCurrent MonthPrior MonthPrior Year
Office4.26%4.19%4.33%
Multifamily3.86%3.78%3.88%
Hotel4.73%4.64%4.88%
Retail4.34%4.36%4.32%
Industrial4.21%4.14%4.30%

Assumptions

Fixed-rate
DSCR: 1.5x (2.0x for hotel)
LTV: 70% - 80%
Maturity: 10 years
Amortization: 20 - 30 years