CRE lending benchmarks
The reference thresholds Relendi's underwriting engine applies to commercial real estate deals — the numbers lenders typically underwrite to for stabilized properties. Last updated 2026-07-11.
Licensed CC BY 4.0 — free to cite with attribution. Cite as: “Relendi CRE Lending Benchmarks” · https://relendi.com/benchmarks
Market cap rates by state and asset class
| Asset class | New York | Florida | National |
|---|---|---|---|
| Residential | 5.0% | 5.5% | 5.5% |
| Mixed-Use | 5.5% | 6.0% | 6.0% |
| Office | 6.0% | 6.5% | 6.5% |
| Hotel | 7.0% | 7.5% | 7.5% |
| Retail | 6.0% | 6.5% | 6.5% |
| Industrial | 5.5% | 6.0% | 6.0% |
| Self-Storage | 6.0% | 6.5% | 6.5% |
Benchmark cap rates for stabilized assets; individual submarkets and property quality move actual pricing substantially. See what a cap rate is.
Minimum DSCR by transaction type
| Stabilized / refinance | 1.25x |
| Acquisition | 1.20x |
| Construction | 1.10x |
| Bridge | 1.10x |
Maximum LTV by transaction type
| Stabilized / refinance | 75% |
| Acquisition | 75% |
| Construction | 65% |
| Bridge | 70% |
Typical operating expense ratios
| Asset class | Expenses / revenue |
|---|---|
| Residential | 40% |
| Mixed-Use | 42% |
| Office | 45% |
| Hotel | 65% |
| Retail | 35% |
| Industrial | 30% |
| Self-Storage | 35% |
| Land | 0% |
Ratios assume gross-lease structures; lease type changes the math.
Test your deal against these benchmarks
The loan sizer applies all four constraints to your numbers, and the DSCR calculator shows the maximum loan your income supports at these thresholds.
Frequently asked questions
What is a good DSCR for a commercial real estate loan?
Most lenders underwrite stabilized commercial property to a minimum DSCR of 1.25x — net operating income covers annual debt service 1.25 times over. Acquisition loans typically require 1.20x, and construction and bridge loans often accept 1.10x because the coverage that matters on those is projected at exit, not at closing.
What is debt yield, and what minimum do commercial lenders use?
Debt yield is net operating income divided by the loan amount, stated as a percentage. An 8% floor is common on stabilized assets. Lenders favor it because, unlike DSCR and LTV, it ignores interest rate, amortization and appraised value — so it cannot be flattered by cheap debt or an aggressive valuation.
Which constraint actually sizes the loan — DSCR, LTV or debt yield?
Whichever one produces the smallest loan. A lender runs all three tests and funds the lowest result, so a property can appraise well and still be cut back by coverage. On low-cap-rate assets LTV usually binds first; on high-rate or thin-NOI deals DSCR or debt yield binds first.
What is the maximum LTV on a commercial mortgage?
Typically 75% of value for stabilized refinances and acquisitions, 70% for bridge loans, and 65% for construction — where the binding test is usually loan-to-cost rather than loan-to-value. Lenders cut these caps for weaker sponsors, thinner secondary markets, and income-volatile asset classes such as hotels.
Where do these benchmarks come from?
These are the reference thresholds used by Relendi's underwriting engine to score commercial real estate deals, reflecting typical market practice for stabilized properties in New York, Florida, and nationally. Individual lenders set their own criteria — treat these as the center of the market, not a rule.
Can I cite or republish these benchmarks?
Yes. This dataset is published under the Creative Commons Attribution 4.0 license (CC BY 4.0). Cite as: 'Relendi CRE Lending Benchmarks' with a link to relendi.com/benchmarks.
Why do cap rate benchmarks differ between New York and Florida?
Cap rates embed each market's growth expectations, liquidity, and risk. New York's deeper institutional demand typically compresses cap rates 25–50 basis points below Florida's for the same asset class, though individual submarkets vary widely.
How often are these benchmarks updated?
They are versioned with Relendi's underwriting engine and reviewed as market conditions shift. The last-updated date is shown on this page and in the dataset metadata.