Seeing Clearly in Commercial Real Estate Lending

On August 12, 2025, CBC Aspire hosted a Lunch & Learn featuring Keagan Finley, CCIM, from Cooperative Business Services (CBS), a Credit Union Service Organization (CUSO) owned by eight credit unions and partnered with nearly 160 nationwide. CBS has been in business for more than two decades and currently services over $3.5 billion in commercial real estate (CRE) loans.

The presentation addressed the three biggest market pressures shaping CRE lending today:

• * Rising Interest Rates – Rates have jumped from 3.5% to over 7%, increasing monthly debt service costs by 40–60%.
• * Loan Maturity Challenges – $957 billion in loans maturing through 2025 face refinancing gaps, as current property values often fall below original loan amounts.
• * Property Performance Strain – Reduced net operating income, higher vacancy rates, and increased operational costs are squeezing margins.

Keagan outlined clear solutions, including:

• * Extended Amortization – Lengthening loan terms to ease monthly payment burdens.
• * Stabilization Strategies – Renovations, repositioning, and leasing efforts to boost property value.
• * Interest-Only Payment Periods – Temporary relief to stabilize cash flow.

Attendees also learned updated lending requirements for refinancing or new loans:

• * Suggested DSCR: Minimum 1.25x, better at 1.35x.
• * Maximum LTV: 75% investment, up to 90% owner-occupied.
• * Increased cash deposits to cover 6 months’ P&I or near-term lease expirations.
• * Updated financial statements (90 days current), three years’ tax returns, detailed debt schedule, and current property performance data.

With credit unions holding $178 billion in total commercial loans (Q1 2025) — including direct lending and through CUSOs — and annual CRE originations estimated at $12 billion (2.4% market share), the session reinforced the importance of preparation, documentation, and strategic collaboration in today’s market.

#CRE #Aspire #ColumbusRegion #CommercialRealEstate #LendingSolutions #CooperativeBusinessServices #CreditUnion