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CBRE Survey: Real Estate Lenders Plan to Lean in to Support Property Sales
February 24, 2026 4 Minute Read
Commercial real estate debt markets will be even more active this year as lenders look to deploy additional capital, according to CBRE’s 2026 Canadian Real Estate Lenders’ Report. Outside of a handful of property types that may face challenges, lenders are open and willing to finance most commercial property types.
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 conducted from Dec. 10, 2025, to Jan. 16, 2026. The survey has been in publication since 2014 and asks questions on activity expectations, lending terms and criteria, as well as lender sentiment and preferences.
“Lenders are back in the market with conviction across most asset classes, most notably for office,” says 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.”
Here are the key takeaways, top cities and target property types, according to the Lenders’ survey:
Multifamily remains the top asset class for lenders
Lenders intend to increase budgets for multifamily above all else, signaling a long-term view of the sector amid short-term softness and market recalibration. Retail continues to improve, with 55% of lenders looking to grow their exposure. Weaker industrial market fundamentals pushed lenders’ intentions to the lowest level of the last 11 surveys. But concern about industrial assets remains low. Land is the only asset class where no lenders want to grow their budgets.
Lender intentions evolve on office
Lender intentions to increase budgets for office loans have surged, indicative of the rapid 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.
But lenders see obsolete office product as a big challenge
Interest in office has surged as the improvement in fundamentals is real and lenders are responding. That said, many lenders noted that obsolescence of older, lower class office product remains a challenge. Lenders are concerned about the significant investment required to modernize, amenitize or repurpose these properties to attract quality tenants.
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 10 years. After years of concentrating activity in Toronto, lenders could be looking to diversify their loan books, which are heavily weighted to the Greater Toronto Area. Vancouver benefits from strong property fundamentals and geographic constraints, which concentrate tenant demand.
Alberta markets continue to rise
Calgary advanced two spots to 3rd 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 6th place. But industry-specific tariffs on steel and autos weighed heavily on lender appetites for Hamilton, ON and London, ON.
Competition among lenders is set to intensify
Competition for real estate loans among lenders in 2026 will remain high as 68% intend to actively or very actively bid on deals over the year. Greater levels of competition could result in tighter spreads and lower borrowing costs, especially as the share of lenders planning to very actively bid on deals rises to its highest point in four years.
Greater debt liquidity in store
Lenders plan to increase originations in Canadian real estate, with 81% expecting to grow their volumes in 2026, increasing debt market liquidity and facilitating dealmaking activity. While most lenders are looking to increase their origination volumes by 10% relative to last year, notably, over a quarter of lenders intend to deploy 20% or more real estate lending capital in 2026.
“The main challenge to the lending environment is economic uncertainty, but lenders are starting to realize that uncertainty is the new normal,” notes 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.”
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