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CRE lenders tighten underwriting as return thresholds reset
As the Texas Multifamily 2026 conference heads to Dallas on Aug. 13, a panel will discuss how borrowers can execute deals amid a higher-rate outlook and stricter terms.
Transaction volume in commercial real estate is gradually returning, but lenders have tightened underwriting standards and reset return thresholds, according to ConnectCRE.
In a preview for Texas Multifamily 2026, set for Aug. 13 in Dallas, ConnectCRE highlights a panel of lending experts and features Nick Jans, a regional director at Red Oak Capital Holdings, discussing how deal making is unfolding in the current rate environment.
Jans said many borrowers appear to have accepted that a dramatic decline in rates is unlikely, and that the most executable transactions tend to be those that must move while sponsors are planning around options including permanent loans, bridge financing, CMBS, and agency structures.
He added that non-recourse remains important for many sponsors, even in bridge lending, and that underwriting has generally become more stringent, with some lenders seeking to deploy capital while still maintaining underwriting fundamentals.