May 1, 2017

Current Market Interest Rates for April

Interest rates on bank quality commercial real estate loans decreased across all property types in April 2017.  Rates remain consistent with their marks from a year ago, reflecting a positive, yet measured view on the economy and commercial real estate.  Other benchmark interest rates are available from the Wall Street Journal.

Collateral TypeChangeCurrent MonthPrior MonthPrior Year
Office4.31%4.42%4.33%
Multifamily3.94%4.05%3.88%
Hotel4.79%4.90%4.88%
Retail4.36%4.47%4.32%
Industrial4.24%4.35%4.30%

Assumptions

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