We hope you've been having a great summer. Now that kids are back in school (at least here in the South) and vacation season seems to be wrapping up, here's everything you should know regarding CRE capital markets:
Capital markets updates
Treasury yields continue to rise and the 5-year Treasury currently hovers around 4.40%. While rumors of a potential rate increase at the next Fed meeting have been dampened by last week's subpar jobs report, interest rate traders are currently forecasting that a rate cut is no longer on the table for this year and that instead a rate hike of at least 25bps is likely.
While the underlying indices have been floating higher, bank and even debt fund spreads still remain skinny. Below are some recent datapoints from our platform.
Q2 2026 Gumption CRE Lending Report
In case you missed it: we released our proprietary CRE Lending Report for Q2 2026. Read it for free here.
Some highlights from the report:
- 112 bps of rate compression across 3 quarters. The platform-wide quarterly average sat at 7.46% in Q2 2025 and troughed at 6.34% in Q1 2026, a 112 bps decline over three consecutive quarters. Q2 2026 closed at 6.62%, up 33 bps from Q1's trough.
- Private lenders carry a 329 bps premium over all other lender types - but for good reason. Banks, credit unions, and insurance companies averaged 6.47% combined in Q2 2026. Private lenders averaged 9.76%, a 329 bps premium reflecting transitional, higher-leverage, and time-sensitive deals that institutional lenders won't underwrite. We provide a full breakdown of why a borrower might want to use private credit over conventional options.
- Industrial and multifamily are the cheapest to finance. With conventional financing, industrial averaged 6.51% in Q2 2026, the lowest of the major tracked asset classes. Multifamily followed at 6.57%. Land was the most expensive at 7.50%, followed by hospitality at 7.10%.
Recent terms and closes
Alabama SFR portfolio refinance
We arranged financing for a portfolio of single-family homes in Birmingham, Alabama. See the full deal overview here.
| Metric | Terms |
|---|---|
| Loan amount | $7,004,000 |
| LTV | 75% |
| Rate | 6.49% fixed |
| Loan term | 5 years |
| Amortization | 25 years |
| I/O period | 36 months |
North Carolina industrial refinance
We recently closed the cash-out refinance of an industrial property in North Carolina. For full details, read our case study linked here.
| Metric | Terms |
|---|---|
| Loan amount | $2,000,000 |
| LTV | 75% |
| Rate | 6.25% fixed |
| Loan term | 5 years |
| Amortization | 25 years |
Our platform constantly compiles in-depth, region-specific capital markets data. We always want to help our borrowers and lenders close more deals. Please reach out if you are interested in term comps for any deals you're looking at.
Welcoming Nick Tomkins
We're excited to welcome Nick Tomkins to our team. Nick brings extensive experience in commercial real estate acquisitions and investment to help build out our platform in the Northeast. He's also an accomplished athlete, having played football as a defensive lineman at Dartmouth and professionally in France. Connect with him on LinkedIn here.
See you at ICSC Florida
Ward, Robert, and Jordan from our team are looking forward to ICSC Florida in Orlando this month. If you're also planning on being there, we'd love to connect and see if we can help you get the best financing terms on the projects in your pipeline.
That's all for now. Looking forward to closing more deals with you this quarter.
This is the web edition of Gumption's August 2026 Capital Markets Update, sent to subscribers on August 14, 2026. Subscribe to the newsletter to get it in your inbox each month.