# Most Active CRE Financing Sources By Property Type

- Link: https://johnmorelli.us/most-active-cre-financing-sources-by-property-type/
- Published: 2024-03-28T18:38:40+00:00
- Author: John Morelli

##### Key Findings:

 * **Government Agency Funding Increased:** Government agencies became a more significant
   CRE financing source, rising from 19% in 2022 to 26% in 2023. This is closer 
   to the pre-pandemic average (2015-2019) of 23%.
 * **Regional Banks Remain Strong:** Regional and local banks continue to be a major
   player, financing 26% of all deals in 2023. This is still higher than the pre-
   pandemic average of 17%. Notably, they were the leading lender for office (37%),
   industrial (33%), retail (35%), hotels (36%), and senior housing (37%). However,
   their involvement in multifamily financing remains lower (13%).

##### Breakdown by Lender Type and Property Type:

         |

##### Property Type

 |

##### Regional Banks

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##### National Banks

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##### International Banks

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##### Insurance Companies

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##### Government Agencies

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##### CMBS

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##### Investor-Driven

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##### Private/Other

 | 
| Office | 37% | 12% | 13% | 11% | N/A | 12% | 12% | <5% | 
| Industrial | 33% | 12% | 9% | 24% | N/A | 11% | 10% | <5% | 
| Retail | 35% | 12% | N/A | 13% | N/A | 25% | 17% | <5% | 
| Hotel | 36% | 8% | 9% | N/A | N/A | 21% | 17% | <5% | 
| Multifamily | 13% | N/A | N/A | N/A | 58% | N/A | N/A | <5% | 
| Senior Housing | 37% | N/A | N/A | N/A | 29% | N/A | 13% | <5% |

#####  

##### Loan Size and LTV (Loan-to-Value) Ratio by Lender Type:

| Lender Type | Average Loan Size | Average LTV | 
| Government Agencies | $18.9 million | 60.5% | 
| CMBS | $21.7 million | 55.7% | 
| International Banks | $16.7 million | 62.1% | 
| National Banks | $12.9 million | 62.6% | 
| Regional & Local Banks | $6.6 million | 66.4% | 
| Investor-Driven | $16.3 million | 68.3% | 
| Insurance Companies | $20.0 million | 58.9% |

##### Key Takeaways:

 * **Government Agencies** dominate financing for [multifamily](https://insigniafs.com/multifamily-loans/)(
   58%) and senior housing (29%).
 * **Regional/Local Banks** are the most active lenders across all property types
   except multifamily, offering a significant share (over 33%) in each category.
   They also provide the smallest average loan size ($6.6 million).
 * **CMBS (Commercial Mortgage-Backed Securities)** are prevalent in retail (25%)
   and hotels (21%).
 * **Investor-Driven** financing plays a role in hotels (17%) and [senior housing](https://insigniafs.com/healthcare/)(
   13%).
 * **National Banks & Insurance Companies** have a consistent presence across property
   types, but not the majority share in any single category.

**Additional Notes:**

 * The table excludes loan details for “Private/Other” due to their small contribution.
 * “N/A” indicates the data source doesn’t provide a specific percentage for that
   category.