Monday Market Moves | Week of 14 April 2025
Welcome to our first edition of Monday Market Moves, a new weekly series from Essex Capital Markets that breaks down what’s happening across commercial real estate—with a focus on debt markets, capital structures, and the trends shaping CRE finance.
Each week, we’ll share data-backed insights, emerging headlines, and our take on how borrowers, lenders, and investors can stay ahead of the curve in a constantly shifting environment.
This Week: Chicago CRE & the Shifting Debt Landscape
We’re kicking things off close to home. In 2025, Chicago’s commercial real estate market is navigating a financing environment that’s more complex—and more selective—than we’ve seen in years:
- Over $1.5 trillion in CRE debt is set to mature nationwide, with a sizable portion concentrated in multifamily and office assets.
- In Chicago, refinancing challenges are front and center as interest rates remain elevated and lender criteria continue to tighten.
- The focus has shifted away from LTV, toward DSCR, and increasingly now toward Debt Yield—as lenders prioritize clean, cash-flow-backed underwriting over asset appreciation or leverage.
- Across active deals, we’re seeing Debt Yields range from 8.75% to 11%, depending on asset class, sponsor experience, and risk profile.
Increased scrutiny on deal metrics and shrinking liquidity pools are presenting challenges—but also opening the door for well-prepared sponsors who can deliver transparency, strong coverage, and realistic business plans.
At Essex Capital Markets, we’re helping clients navigate this environment by structuring smart, strategic capital solutions that align with both current realities and long-term goals—across acquisitions, refinances, and recapitalizations.
Sources:
Crain’s Chicago Business
EXP Realty
EXP Realty
Mortgage Bankers Association
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