The commercial lending market is evolving rapidly, and understanding the latest trends is critical for lenders, investors, and financial institutions looking to stay ahead. GoDocs’ latest report, “GoDocs Market Insights: Navigating Shifts in Private Commercial Lending,” reveals key insights that could impact lending strategies in 2025 and beyond.
The Numbers Tell a Story
Over the past year, we’ve seen significant shifts in initial interest rates for long-term Debt Service Coverage Ratio (DSCR) loans and short-term commercial real estate (CRE) loans. Long-term DSCR loans have experienced a steady decline in interest rates, dropping from 8.73% in January 2024 to 7.76% in February 2025. Meanwhile, short-term loans remain at a higher rate, though they have also seen a slight decrease.
Loan values tell an equally compelling story. While long-term DSCR loan amounts have increased to an average of $354,931, short-term loans saw a dramatic peak of $745,793 before settling at $687,335. What’s driving these shifts, and how should lenders respond? Our whitepaper breaks down the data and what it means for commercial lending in today’s market.
What This Means for Commercial Lenders
Declining DSCR loan rates signal a more competitive lending environment, making it easier for investors to finance commercial properties. However, high short-term loan rates continue to highlight the importance of risk management. With nearly $957 billion in commercial mortgages set to mature in 2025, lenders must prepare for refinancing challenges and new opportunities in loan origination.
At GoDocs, we provide the technology and compliance solutions that help lenders navigate these market changes with confidence. Whether you’re processing DSCR loans, bridge loans, or complex construction financing, our automated document generation platform ensures speed, accuracy, and regulatory compliance.
Get the Full Report
Want to dive deeper into the numbers and understand how these trends could impact your lending strategies? Download the full report now and get the insights you need to stay ahead in 2025.
VP, Operations
