California Commercial Mortgage Rates
What's driving rates here? California markets continue to price quality industrial and multifamily competitively. With 10-yr UST at 4.31%, expect low-to-mid 6s at low leverage depending on structure and prepay.
Data: seasonally adjusted where available. Benchmarks update on a short cache; spreads are editorial ranges.
Spreads by Lender Type & Leverage
| Lender Type | ≤55% LTV | 55–65% LTV | 65–75% LTV |
|---|---|---|---|
| LifeCo | 150–225 bps | 210–285 bps | 250–325 bps |
| Bank | 175–250 bps | 225–300 bps | 275–375 bps |
| Agencies (MF only) | 140–210 bps | 175–240 bps | 200–280 bps |
| Debt Funds | 300–450 bps | 350–550 bps | 500–750 bps |
Lender mix guidance
LifeCos are competitive at lower leverage on core industrial and MF. Agencies and banks split MF depending on leverage and prepay needs; debt funds cover structure-driven cases.
- Lower leverage tightens spreads materially; consider sizing at ≤55% LTV for best quotes.
- Prepayment flexibility (vs. hard yield maintenance) influences the lender set and pricing.
- For MF, agencies may be most efficient at moderate leverage; LifeCos often lead at low leverage.
- Clean environmental and updated third‑party reports reduce friction and timing risk.
- Structure (reserves/cash management) can substitute for leverage where appropriate.
What moved pricing recently: 10-yr UST is 4.31%. 30‑day vol score 100/100 with last day move 124 bps.
Multifamily
Agencies vs. bank dynamics vary by leverage and prepay. See ranges above.
- Agencies most efficient at moderate leverage with standard prepay; LifeCos lead at ≤55% LTV.
- Mission/Affordability overlays can improve pricing where applicable.
- Consider step‑down vs. yield maintenance tradeoffs for future flexibility.
Industrial
Core product at lower leverage tends to clear tighter, especially with LifeCos.
- Distribution/logistics with strong tenancy clears tighter than older flex with rollover risk.
- Long‑term leases with quality credit help access LifeCo balance sheets.
- Higher leverage often shifts to banks or debt funds with structure.
Office
Selectivity remains elevated; structure and tenancy drive outcomes.
- Leasing rollover, capex, and TI/LC plans are central to underwriting.
- Lower leverage, partial paydowns, and/or additional recourse can broaden the lender set.
- Expect tighter covenants and reserves; model DSCR and covenants at realistic re‑tenanting.
FAQs
Does California documentary transfer tax apply to refinances?
Generally no for same-borrower refinances; it targets conveyances/sales. Local practice varies—confirm locally.
Who is most competitive for stabilized multifamily?
Agencies and banks, depending on leverage and prepayment flexibility. LifeCos may lead at low leverage.
Related links
- Methodology – how we compute the benchmark + spread.
- Glossary – quick definitions for lenders, leverage, DSCR, and more.
- Guide: Size a DSCR loan
- Guide: Commercial mortgage refinance rates
Explore other states
Transfer Taxes Note (CA)
Methodology
We combine public benchmarks with editorial spread ranges. Sources: H.15, Treasury Par Yield, SOFR, Census Permits, BLS CES.