Illinois Commercial Mortgage Rates
What's driving rates here? Illinois lenders are active across core property types. With 10-yr UST at 4.31%, use the ranges below as directional guidance.
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 | 200–275 bps | 250–325 bps |
| Bank | 175–250 bps | 235–315 bps | 275–375 bps |
| Agencies (MF only) | 140–210 bps | 175–240 bps | 200–280 bps |
| Debt Funds | 300–450 bps | 350–550 bps | 450–700 bps |
Lender mix guidance
Banks and agencies remain active for stabilized MF; LifeCos target low-leverage core. Debt funds address transitional or higher-leverage structures where pricing and covenants allow.
- 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.
- Property tax reassessment and appeal timing are central to underwriting and escrows.
- Cook County dynamics may drive DSCR haircuts; bring recent appeal history.
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
Do property taxes affect sizing?
Yes—assessments and appeal dynamics affect NOI and DSCR; lenders underwrite to stabilized tax loads.
Who’s active in Chicago core vs. suburbs?
Banks and LifeCos at lower leverage; agencies on MF; debt funds for transitional situations.
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
Methodology
We combine public benchmarks with editorial spread ranges. Sources: H.15, Treasury Par Yield, SOFR, Census Permits, BLS CES.