Key takeaways from CREFC Miami 2025

As a Senior Director for Capital Markets at Walker & Dunlop, I recently had the opportunity to attend CREFC Miami 2025, a lender-driven conference that has grown in prominence within the commercial real estate (CRE) finance sector. This year’s event provided valuable insights into market sentiment, capital availability, and the evolving role of bridge financing. Here are my key takeaways:

A bullish market with unprecedented capital availability

The sentiment at CREFC Miami was overwhelmingly positive. There is currently more capital available in the market than at any other point in my 20-year career. Lenders—including life insurance companies, banks, and debt funds—are eager to deploy capital across bridge, construction, and permanent financing. However, a key question remains: Will there be enough viable deals for this capital to be fully utilized?

Bridge loans remain a competitive solution

One of the most discussed financing tools at the conference was bridge lending. Bridge loans are short-term, flexible financing options designed to help borrowers transition properties from one phase to another—whether through lease-up, refinancing, or eventual sale. Given the current interest rate environment and the challenges in securing permanent financing, bridge loans have become vital tools in moving deals forward.

• More competitive pricing: Spreads on bridge loans have tightened by over 50 basis points in the past 120 days, making them an increasingly attractive option.
• More aggressive underwriting: Lenders are lowering underwritten exit debt yields to achieve higher loan proceeds.
• Increased flexibility: Lenders are offering shorter prepayment structures and reducing or eliminating exit fees.
• Strategic refinancing tool: Given the current 10-year Treasury yield of approximately 4.5 percent, many investors are using bridge loans to recapitalize assets rather than pursue sales.

A shift toward floating-rate loans

Another major trend emerging from CREFC Miami was the preference for floating-rate debt. Over the past 90 days, lenders have increasingly favored floating-rate structures, providing borrowers with flexibility amid ongoing market fluctuations. This shift indicates that investors are looking for adaptable financing solutions that can evolve with the market.

For some perspective, in 2021 and 2022, originations at Walker & Dunlop were roughly 50 percent fixed rate and 50 percent floating rate. In 2023 and 2024, 65 to 70 percent of Walker & Dunlop’s originations were fixed rate.

Looking ahead: Opportunities in CRE finance

As 2025 unfolds, I anticipate continued competition among lenders, leading to more aggressive terms for borrowers. With capital readily available, sponsors are well-positioned to leverage bridge financing and other flexible capital solutions to navigate the evolving market.

For CRE investors and developers looking to capitalize on current market dynamics, bridge loans offer a strategic way to bridge the gap to better opportunities. Contact Walker & Dunlop's Capital Markets team to explore financing solutions tailored to your investment strategy.