Lender Sentiment Survey: Report

Over the past year, lender sentiment in commercial real estate finance has undergone a notable shift. What began in early 2025 as a market dominated by interest-rate anxiety has evolved into an environment defined more by competition, credit selectivity, and strategic positioning.

Slatt Capital’s third edition of the Lender Sentiment Survey offers a clear window into how commercial real estate lenders’ thinking has evolved. By comparing current findings over three surveys, a consistent story emerges: the market has moved from rate-driven anxiety, through midyear uncertainty, into a phase defined by competition, selectivity, and getting down to business.

Rates: From Dominant Fear to Manageable Reality

• In February 2025, interest rates overwhelmingly ranked as lenders’ primary concern, with most respondents expecting the 10year Treasury to remain firmly in the mid4% range.
• By September 2025, expectations moderated, clustering closer to the low4% to high3% range.
• Currently, rate expectations remain in that same band, signaling that while rates are still elevated, they are no longer the central story.

What changed: Rates stabilized.
Why it matters: Predictability has replaced paralysis, allowing lenders to refocus on execution rather than macro speculation.

Headwinds: Competition Replaces Rates

The most striking shift across the three surveys is the evolution of perceived headwinds.

Interest rates dominated in February 2025.

By September 2025, competition and market concerns gained ground.

In the current February 2026 results, competition is the clear leading headwind, with credit and risk appetite rising as a secondary concern.

What changed: Capital returned faster than deals.
Why it matters: The challenge today is no longer “Can I lend?” but “Where can I lend competitively without compromising discipline?”

Lending Allocations: A Mid‑Year Pause, Then a Stronger Re‑Acceleration

Across all three editions of the Slatt survey, a majority of lenders reported plans to grow lending allocations.

• In February 2025, growth intent was already strong, with most respondents indicating allocations were moving “up.”
• September 2025 marked a clear inflection point, as uncertainty crept in and a larger share of lenders shifted to “the same,” reflecting a more cautious, wait‑and‑see posture.
• Currently, growth intent rebounded decisively, producing the most expansion‑oriented allocation outlook across the three surveys.

What changed: A temporary mid‑year pause driven by uncertainty gave way to renewed confidence and clearer conviction.

Why it matters: Lenders are expanding mandates again—but doing so with discipline, targeting deals and sectors where they can compete effectively rather than broadly loosening credit standards.

Product Focus: Multifamily Remains the Anchor

Multifamily has consistently ranked as the product where lenders feel most competitive across all three surveys. Industrial has remained a durable second, while retail has appeared opportunistically. Office, by contrast, continues to dominate “least competitive” responses.

What changed: Very little—and that’s the point.
Why it matters: Capital is not rotating randomly; it is reinforcing current convictions.

Bridge Lending: Uncertainty Peaks, Then Normalizes

• In February 2025, bridge lending expectations leaned strongly toward growth.
• By September 2025, uncertainty spiked, with “I don’t know” becoming a common response.
• The current February 2026 survey shows sentiment settling back toward “about the same” or modest increases.

What changed: Optimism → uncertainty → balance.
Why it matters: Bridge lending remains viable, but only with credible exits and disciplined underwriting.

So What? Actionable Takeaways

For Lenders

Differentiate beyond price. In a competitive market, clarity of mandate and speed of execution matter more than aggressiveness.

Stay selective. Allocation growth does not equal risk tolerance b Multifamily and industrial continue to reward conviction.

For Borrowers

Capital is available—but not generic. The right lender match is more important than ever.

Expect scrutiny. Business plans, sponsorship, and exits drive outcomes.

Preparation is leverage. Certainty can offset pricing.

***

For more information about Slatt Capital’s Lender Sentiment Survey or to be included in the next survey group or communication to participate, please click here.