Understanding Interest Rate Caps: Why Lenders Require Them and What They Cost in 2026
Close a floating rate bridge or construction loan and one line item shows up in the sources and uses that many borrowers see for the first time at the term sheet stage: the interest rate cap premium. It is not optional. Nearly every floating rate lender in commercial real estate requires one, and the check […]
The 2026 Maturity Wall: What the End of Extend and Pretend Means for Borrowers
Roughly $875 billion of commercial and multifamily mortgage debt, 17% of all outstanding balances, is scheduled to mature in 2026, according to the Mortgage Bankers Association’s loan maturity survey. That figure is actually down 9% from the $957 billion that came due in 2025, and the MBA’s own framing is that the market is moving […]
What Is DSCR, and Why Do Lenders Care About It?
Ask any commercial real estate lender what metric they care about most when underwriting a loan, and the answer is almost always the same: DSCR. Short for Debt Service Coverage Ratio, it’s a single number that tells lenders whether a property generates enough income to cover its debt payments, and it often determines whether a […]
LTC vs. LTV: Two Metrics That Sound the Same But Work Very Differently
In commercial real estate lending, two ratios come up in virtually every financing conversation: loan-to-cost (LTC) and loan-to-value (LTV). Both measure how much a lender is willing to finance relative to some baseline, but that baseline is different in each case, and so is the context in which each metric applies. Confusing the two is […]
Understanding Construction Contract Types: A Complete Overview
The type of construction contract you choose fundamentally determines who bears the risk when things go wrong. For anyone financing or developing multifamily and commercial projects, understanding these contract structures is essential risk management that directly impacts project performance. When a construction loan defaults, lenders often step into the borrower’s shoes by taking assignment of […]
The $214 Billion Asset Class Hiding in Plain Sight: Inside Industrial Outdoor Storage’s Institutional Moment
You’ve probably driven past industrial outdoor storage sites countless times—those fenced lots filled with shipping containers, parked trucks, or construction equipment. This overlooked sector has quietly become one of commercial real estate’s most active investment categories, with institutional capital deploying significant resources into what’s now a $214 billion market. Understanding this rapidly institutionalizing asset class […]
Understanding Recourse and Guarantees in Commercial Real Estate: What Every Borrower Needs to Know
When securing commercial real estate financing, few topics create more confusion—or carry greater personal risk—than the structure of recourse and guarantees. While many borrowers focus primarily on interest rates and loan amounts, the guarantee structure often determines the true risk exposure of a transaction. A misunderstood guarantee can transform what appears to be a low-risk […]
Understanding ALTA Endorsements in Commercial Real Estate: Essential Protection
ALTA endorsements can be a confusing piece of the closing process in commercial real estate, yet they are incredibly important and often requested by lenders to ensure protection for the asset, lender, and borrower alike. While standard title insurance policies provide foundational coverage, they rarely address the specific risks and complexities inherent in commercial real […]
Why Institutional Capital Is Betting on Office Real Estate’s Next Chapter
While headlines proclaim the death of downtown offices, institutional investors are quietly taking a different view. The office sector faces significant challenges, with $51.6 billion in outstanding distress and another $74.7 billion at risk, according to MSCI Real Assets. The distress rate reached 17.2% in December 2024, higher than other commercial property types. Yet institutional […]
San Diego Caps ADU Bonus Program: What Developers Need to Know
Shown Above: A 10-unit accessory dwelling unit complex under construction in April in Clairemont In a narrow 5-4 decision on June 16, 2025, the San Diego City Council adopted significant reforms to its previously aggressive Accessory Dwelling Unit (ADU) bonus program, placing new limits on the number of ADUs per parcel and tightening development standards […]
