Commercial real estate financing activity grew in the third quarter of 2026 even as borrowing costs rose, according to the latest Debt Market Survey from the Commercial Real Estate Development Association Research Foundation (formerly the NAIOP Research Foundation). Drawing on Altus Group’s quarterly survey of CRE borrowers and lenders, the report describes an active but increasingly expensive financing market.

Reported transaction activity rose 13% from Q2, with an especially notable surge in construction financing quotes, especially in multifamily and industrial projects. At the same time, lenders widened spreads on ground-up projects across nearly every loan product. Similarly, all-in borrowing costs rose across nearly every property and product type.

“Lenders stayed active in the third quarter even as the Fed raised rates for the first time since 2023 and Treasury yields climbed,” said Marc Selvitelli, CAE, president and CEO of CREDA. “Quote volume increased and capital remains available across property types. Borrowers are paying more, but they are not being shut out.”

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