Slatt Capital Lender Sentiment Survey Results
As we step into 2025, commercial real estate lenders find themselves navigating a landscape filled with both opportunities and challenges. Interest rate uncertainty, shifting market dynamics, and competition for deals continue to shape the lending environment. But where do industry insiders see the biggest moves happening?
To answer that question, Slatt Capital conducted a survey of lending professionals from a variety of capital sources to gauge sentiment for the year ahead. The results paint a picture of cautious optimism: lenders are gearing up for increased activity, but strategic sector focus and risk management will be more critical than ever.
Here’s what we learned about where capital is flowing, which asset classes are heating up, and what headwinds lenders are bracing for in 2025.
Download the full report here.
Interest Rates & Treasury Forecasts
The trajectory of interest rates remains a key focus. A majority of respondents (64.7%) predict the 10-year Treasury rate will settle between 4.25% and 4.75% by the end of 2025, with only 7.4% expecting it to exceed 5%. Meanwhile, lenders are split on whether the inverse relationship between Fed Funds rates and the 10-year Treasury will persist—42.6% believe it will, while the same percentage remains unsure.
Key Headwinds: Interest Rates & Market Concerns
When asked about the biggest obstacles to lending in 2025, nearly half (48.5%) pointed to rising interest rates as their top concern. Market instability, including valuation challenges, vacancy risks, and rent trends, ranked second at 22.1%, while competition among lenders remains a factor for 16.2%. Surprisingly, underwriting changes were not seen as a major challenge.
Lending Activity & Market Focus
Despite these concerns, lenders are gearing up for a busy year. A resounding 72.1% plan to increase their lending allocations, with only 2.9% expecting a decline. Activity is expected to ramp up as the year progresses, with Q3 (36.8%) and Q2 (27.9%) projected to be the most active quarters.
Asset Class Competitiveness: Multifamily & Industrial Lead, Office Struggles
When it comes to competition, multifamily remains the hottest sector, with 41.2% of lenders naming it their most competitive focus. Industrial follows at 25%, and retail at 14.7%. On the other end of the spectrum, office continues to struggle, with 61.8% of lenders saying it will be their least competitive sector in 2025—a clear sign of the ongoing challenges in the office market.
Download the full report here.
Bridge Lending & Sector Growth
Bridge lending is poised for expansion, with 55.9% of respondents forecasting an increase in volume, including 26.5% expecting a jump of 25% or more. Debt funds and private lenders are set to lead the charge, with 48.5% predicting significant volume growth in this sector. Meanwhile, traditional banks and credit unions face headwinds, with 42.6% of respondents expecting them to be the least competitive lenders in 2025.
Looking Ahead
With lending allocations rising and private debt players expanding their foothold, 2025 is shaping up to be an active year. However, the industry remains divided on where interest rates will land, how much risk appetite will grow, and which sectors will outperform. Office struggles persist, multifamily and industrial remain attractive, and bridge lending continues to gain momentum.
Slatt Capital will be watching these trends closely and keeping our clients informed with the latest insights. As the landscape evolves, staying ahead of the curve will be critical—because in 2025, strategy will be everything.
Download the full report here.