Real Estate Lenders Plan to Lean in to Support Property Sales in 2026: CBRE

CBRE’s Lenders’ Report analyzes the responses of 47 domestic and foreign lenders, representing over $200 billion in commercial real estate loans under management combined, to a 30-question survey.

The survey, conducted from Dec. 10, 2025, to Jan. 16, 2026, has been in publication since 2014, and asks questions about activity expectations, lending terms and criteria, and lender sentiment and preferences.

“Lenders are back in the market with conviction across most asset classes, most notably for office,” said CBRE senior vice president Joshua Sonshine. “Origination volumes are rising, balance sheets are opening up, and we’re seeing a clear intention from lenders to deploy more capital this year. Even with renewed momentum, underwriting discipline isn’t going anywhere. There are fewer ‘sure things’ in this market, and lenders are taking a measured, fundamentals-first approach across all asset classes.”

Some key takeaways from the survey include the following.

Vancouver beats Toronto as lenders’ top market of choice. Lenders have the strongest appetite for Vancouver in 2026, overtaking Toronto in the rankings as the top market of choice for the first time in a decade. Following years of concentrating activity in Toronto, the survey noted that lenders could be looking to diversify their loan books, which are heavily weighted to the Greater Toronto Area (GTA). Vancouver benefits from strong property fundamentals and geographic constraints, which concentrate tenant demand.

Multifamily remains the top asset class for lenders. Lenders intend to increase budgets for multifamily above all else, which points to a long-term view of the sector amid short-term softness and market recalibration. Retail continues to improve, with 55 per cent of lenders looking to grow their exposure. Weaker industrial market fundamentals pushed lenders’ intentions to the lowest level of the last 11 surveys, however, concern about industrial assets remains low. Land is the only asset class where no lenders want to grow their budgets.

Lender intentions to increase budgets for office loans have surged, which indicate the fast rebound in market sentiment. For the first time in the last six surveys, appetite for office loans has rebounded and lenders on balance are once again looking to increase budgets instead of decreasing.

The survey noted, however, that lenders see obsolete office product as a challenge. Interest in office has surged as the improvement in fundamentals is real and lenders are responding. Many lenders noted that obsolescence of older, lower class office product remains a challenge. Lenders are also concerned about the significant investment required to modernize, amenitize or repurpose these properties to attract quality tenants.

Calgary advanced two spots to third in the rankings, backed by strong migration trends and an energy sector that largely shields the economy from U.S. tariffs. Edmonton’s ranking also rose one spot to sixth place, but industry-specific tariffs on steel and autos weighed heavily on lender appetites for Hamilton and London, Ontario.

“The main challenge to the lending environment is economic uncertainty, but lenders are starting to realize that uncertainty is the new normal,” said CBRE senior vice president Jessica Harland. “Bidding is more active, credit spreads are tightening, and lenders now have a clearer read on how to price risk across sectors. That visibility is translating into a more competitive and ultimately healthier lending environment.”