How to Secure Your Next CRE Loan: A Data-Driven Approach

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The lending landscape for U.S. commercial real estate (CRE) in 2025 is evolving, presenting both opportunities and challenges. On one hand, lending activity is on the rise, with the CBRE Lending Momentum Index surging 90% year-over-year in the first quarter. On the other hand, credit conditions remain tight as lenders maintain stricter underwriting standards in a market still shaped by elevated interest rates. Despite this environment, there are concrete steps investors and developers can take to secure financing. This guide explains the current market and lays out practical strategies—from strengthening your application to choosing the right funding source—so you can unlock capital for your next project.

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The 2025 CRE Lending Landscape

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Many property owners are pursuing acquisition and development plans while lenders remain cautious. Traditional banks have become more selective, and borrowing costs, while stabilizing, are higher than pre-2022 levels. This makes preparation and lender fit more important than ever. Non-bank financing has grown rapidly, with private credit funds stepping in to offer more flexible underwriting for deals that may not fit traditional criteria, such as value-add projects or properties in transition. CMBS (Commercial Mortgage-Backed Securities) issuance is also rebounding for well-structured deals. The big picture is clear: capital is available, but borrowers must be deliberate about where and how they apply.

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Preparing Your CRE Loan Application

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A lender’s first impression of your project is your plan, your numbers, and your track record. A clear business plan with realistic, conservative financial projections shows how borrowed funds will translate into revenue and repayment. Lenders are looking closely at sponsor experience, which is now considered an essential requirement, not just an optional bonus. Because of the market's volatility, lenders are also placing more emphasis on stress-testing financial models against downside scenarios.

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Organize your documentation in a comprehensive due diligence package in advance. This includes tax returns, property income statements, a personal financial statement, entity documents, leases, and a detailed use-of-funds summary to ensure the underwriting process moves quickly. Emphasize your team’s relevant experience and past project successes to give lenders confidence in your ability to deliver.

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Choosing the Right Lender and Loan Program

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No single lender fits every CRE project. Traditional banks are re-entering the market and are often competitive for high-quality, stabilized assets in favored sectors like multifamily and industrial. However, their underwriting remains strict, with typical requirements including lower loan-to-value (LTV) ratios of 55-65% and higher debt service coverage ratios (DSCR) of 1.30x and above.

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Private credit and other non-bank lenders provide speed and flexible underwriting, making them useful for transitional assets, construction financing, or situations where bank financing is unavailable. These lenders can offer creative structures, such as bridge loans and mezzanine debt, to fill funding gaps. While often more expensive, their customized terms can be invaluable for complex projects.  

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Positioning by Sector

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Lender appetite varies significantly by property type. Multifamily and industrial remain the most favored sectors due to strong fundamentals and stable demand. Lenders are confident in asset classes with reliable cash flows, though overbuilding in some Sun Belt multifamily markets is a point of scrutiny. Retail is seeing a resurgence, particularly for grocery-anchored centers that have proven resilient.

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The office sector remains the most challenged, with the national vacancy rate hitting a new record high of 20.4% in the first quarter of 2025. Securing a loan for an office property requires a much stronger case, often involving significant pre-leasing commitments and a clear strategy to attract tenants in a competitive market.

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Borrowing Strategically in a Shifting Market

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Once you have identified a lender, the goal is to structure a deal that is resilient to market shifts. With a massive wave of CRE debt maturing, refinancing risk is a top concern for both borrowers and lenders. Plan ahead for your exit or refinancing scenario from day one. For variable-rate loans, consider interest rate caps or other hedging strategies to protect against volatility.

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Finally, incorporating Environmental, Social, and Governance (ESG) criteria into your project is becoming standard practice and can help unlock better loan terms. Lenders are increasingly conducting ESG and climate risk reviews as part of their underwriting process.

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Conclusion

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Securing a commercial real estate loan in 2025 is absolutely achievable with thorough preparation, strategic lender selection, and a deep understanding of the current market. Build a credible, data-driven plan, organize your documents meticulously, and target lenders whose products match your project's needs.