Most Active CRE Financing Sources By Property Type

This CRE lending snapshot summarizes real estate financing trends in 2023, highlighting the most active lenders for different property types. This data is intended to help real estate investors and professionals understand which lenders were most active for different property types during 2023.

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Key Findings:
  • Government Agency Funding Increased: Government agencies became a more significant CRE financing source, rising from 19% in 2022 to 26% in 2023. This is closer to the pre-pandemic average (2015-2019) of 23%.

  • Regional Banks Remain Strong: Regional and local banks continue to be a major player, financing 26% of all deals in 2023. This is still higher than the pre-pandemic average of 17%. Notably, they were the leading lender for office (37%), industrial (33%), retail (35%), hotels (36%), and senior housing (37%). However, their involvement in multifamily financing remains lower (13%).

Breakdown by Lender Type and Property Type:
Property Type
Regional Banks
National Banks
International Banks
Insurance Companies
Government Agencies
Senior Housing37%N/AN/AN/A29%N/A13%<5%
Loan Size and LTV (Loan-to-Value) Ratio by Lender Type:
Lender TypeAverage Loan SizeAverage LTV
Government Agencies$18.9 million60.5%
CMBS$21.7 million55.7%
International Banks$16.7 million62.1%
National Banks$12.9 million62.6%
Regional & Local Banks$6.6 million66.4%
Investor-Driven$16.3 million68.3%
Insurance Companies$20.0 million58.9%
Key Takeaways:
  • Government Agencies dominate financing for multifamily (58%) and senior housing (29%).

  • Regional/Local Banks are the most active lenders across all property types except multifamily, offering a significant share (over 33%) in each category. They also provide the smallest average loan size ($6.6 million).

  • CMBS (Commercial Mortgage-Backed Securities) are prevalent in retail (25%) and hotels (21%).

  • Investor-Driven financing plays a role in hotels (17%) and senior housing (13%).

  • National Banks & Insurance Companies have a consistent presence across property types, but not the majority share in any single category.

Additional Notes:

  • The table excludes loan details for “Private/Other” due to their small contribution.

  • “N/A” indicates the data source doesn’t provide a specific percentage for that category.

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