Monday Market Moves | Week of November 10, 2025

Welcome to Monday Market Moves, the weekly series from Essex Capital Markets briefing you on Chicago commercial real estate capital markets. We cover key trends in CRE debt, refinancing, and capital structures to help investors, borrowers, and lenders navigate today’s CRE financing market.

This Week: Lenders Prioritize Stability Over Aggression as Year-End Approaches

As 2025 starts coming to a close, the lending environment is defined by discipline and selectivity. Capital is available, but underwriting remains conservative as lenders focus on stable assets and proven sponsors heading into year-end.

Market Snapshot

• Most lenders are emphasizing stability over volume to close out 2025.
• Multifamily assets in established submarkets continue to see the strongest appetite.
• Leverage levels remain conservative, with a focus on stabilized income and clean operating histories.
• Borrower relationships and sponsor experience are key differentiators in final credit decisions.

Pricing Holds Firm Despite Treasury Movement

Despite modest fluctuations in the 10-Year Treasury — which has hovered near 4% through November — credit spreads have remained largely unchanged, reflecting lender caution rather than competition. Most quotes are still structured with moderate leverage and shorter fixed-rate terms, as balance-sheet lenders aim to manage exposure heading into 2026. Meanwhile, debt funds are re-emerging selectively, offering creative structures for borrowers seeking flexibility.

Q4 Lending Behavior

• Lenders are finalizing year-end allocations, with a preference for strong sponsorship and stabilized properties.
• Banks remain disciplined, while some credit unions and regional institutions look to fill remaining balance-sheet capacity.
• Execution speed improves for borrowers with documentation ready and clear business plans.
• Value-add and transitional assets face higher equity requirements or additional recourse. These assets will present more of a challenge to complete a year-end closing. The more straightforward the transaction, the greater the likelihood it can close by year end.

Looking Ahead

With rates plateauing and lender sentiment steady, the path into early 2026 favors well-prepared borrowers who can demonstrate performance and readiness. Securing financing now, while markets remain predictable, may offer an advantage before the next phase of rate and policy shifts.

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