iscover 
Many leading commercial real estate lenders appear eager to expand their loan portfolios, according to a new survey, although rising construction costs remain a concern.
Loan appetite was strong in CBRE Research’s H2 2025 Lender Sentiment Survey, which surveyed 20 key commercial real estate lenders across local banks, international banks, and non-banks. Half of respondents indicated plans to expand their portfolios over the next three months, while just 5 per cent said they intended to reduce theirs.
Respondents said they expect credit margins to stabilise over the coming months, with more than 80 per cent of lenders anticipating little movement, up from 56 per cent in 1H25.
Meanwhile, presale requirements have also eased for the majority of lenders, according to the survey, with 79 per cent now requiring presales of 0–50 per cent of debt funding, up from 50 per cent just 12 months earlier.
The survey also identified development feasibility challenges.
Elevated construction costs were identified as the major challenge among lenders surveyed, followed by uncertainty around future property values and low levels of investment activity.
Andrew McCasker, CBRE’s managing director of debt and structured finance, said these challenges have become evident across all major markets and segments.
“This is impacting supply pipelines and has been noted as the single most important challenge facing the lending environment in 2026,” he said.
“As markets begin to enter this new phase of subdued supply, we expect many existing assets to experience significant tailwinds, although the speed and strength of this cycle is not yet clear.”
The survey highlights that industrial and logistics remains the most preferred asset class for lenders – by a considerable margin – followed by build-to-sell projects.
Will Edwards, CBRE debt and structure finance director, also noted that interest in data centres has continued to decline due to rising complexity in the development and operation.
“Rising complexity in the development and operation of data centres assets has led to this decline in interest, and while structural tailwinds for the sector are strong, heightened competition has prompted many investors to adopt a more cautious stance,” he said.
Continued momentum
The commercial property market showed strong momentum in 2025, with various dynamics influencing different lenders and borrower profiles.
Speaking to Broker Daily sister brand The Adviser for The Broker’s Guide to Commercial Finance, Isabella Constantinou, a finance broker from Sydney-based brokerage Simplicity Loans & Advisory, said there had been increased appetite from banks taking another look at segments they may have pulled back from, offering more competitive prices and more non-property-secured lending.
“Non-bank CRE lending and the private credit sector also continue to grow strongly and there is a lot of efficiency and innovation happening in this space,” she said.
“Borrowers are increasingly expecting alternative documentation options, faster turnarounds, more flexible covenant terms.
“Non-banks have leveraged this well, and banks are now trying to catch up.”
Meanwhile, Son Pham, a commercial broker from Sydney-based brokerage Rethink Financing, said he had generally observed more lenders coming to the space.
“Traditionally they have been banks but the rise of non-banks entering the market has increased competition, meaning more competitive rates and terms to capture market share,” he added.
[Related: Commercial property investment surges as investors chase higher yields]