Market Insights: CMBA CREF & ICSC Conference Roundup

Bridge Lending Heat: A Vegas Panel Takeaway

Jacob Lee, Vice President at PSRS, recently moderated a panel discussion at the CMBA Commercial Real Estate Finance Conference in Las Vegas, bringing together leading bridge lenders to discuss the current state of the market. Here’s what’s happening on the ground:

The Market is Liquid, But Competition is Intense

The Bridge lending space is experiencing steady deal flow and consistent opportunities. However, sponsors and borrowers can’t expect a free pass. Lenders are more selective than ever, with pricing ranges that tell the story: quality, lower-risk deals are pricing in the mid-to-high 200s basis points, while the higher-risk end of the spectrum stretches to 600+ bps.

A Major Shift: Refinances Are Back

The deal pipeline is changing. Where acquisitions dominated 70-80% of the market a year or two ago, lenders now report a near-even split, approximately 50% acquisitions and 50% refinances. Why? Sponsors are holding onto properties longer, waiting for execution plans to mature, or finding permanent financing less attractive. The cost and terms of long-term debt (whether 3-, 5-, or 10-year) don’t justify locking in right now for many borrowers.

Bridge-to-Bridge: The New Normal

Once considered taboo, back-to-back bridge financing has become a legitimate solution. Lenders are increasingly comfortable with this strategy as borrowers seek more runway to execute their business plans.

Sponsor Credibility Matters More Than Ever

If one phrase echoed across the panel, it was this: lenders are now laser-focused on who is behind the deal. Have they carried out similar projects? Do they have market experience? Are they pivoting to a new asset class? These questions now carry significantly more weight in underwriting decisions than they did in the past.

What Life Insurance Companies Are Doing

Across 25 lender meetings on the conference floor, only one had hit their annual allocation, and even that lender wasn’t slowing down. Life companies have capital ready to deploy.

However, they’re becoming more tactical:

• Borrowers have less appetite for 10-year fixed-rate mortgages, which forces lenders to offer shorter duration options. Many borrowers still expect rates to decline, but 2026 has proven otherwise.
• Competitive pricing is king. Lenders who can price in the low-to-mid 100s spreads are winning deals. The most competitive can price between 110-125 bps on quality credits (grocery-anchored retail, multifamily, industrial), with the majority of middle-market lenders pricing between 150-175.
• Floating rate demand. Prior to the recent run-in treasuries, sponsors increasingly prefer 3- and 5-year floating-rate money with minimal (or no) prepayment penalties.

Retail Rising: What ICSC San Diego Revealed

One week after Vegas, the International Council of Shopping Centers (ICSC) conference in San Diego painted a very different picture depending on property type.

Retail: The Golden Child

While offices and portions of the multifamily market are feeling pressure, retail is riding high. Brokers, sponsors, and investors at ICSC were visibly relieved to be holding retail assets. Recent Wall Street Journal reports of strong retail sales are fueling optimism.

Supply Constraints = Opportunity

New ground-up retail development in Southern California remains limited, largely due to land scarcity and the economics of redevelopment. But that’s not dampening tenant demand.

Tenant Demand is Relentless

From San Diego to Orange County, the Inland Empire, and LA proper, leasing brokers report:

• National and regional credit tenants want in
• Mom-and-pop operators are incredibly active and are filling spaces as quickly as leases expire
• Vacancy is rare. In many cases, new tenants are lined up before the previous lease matures

This dynamic is particularly strong among independent operators, who rarely see their spaces sitting empty.

The Takeaway

Two conferences, two very different markets, but a clear message: Market success in 2026 requires specificity and strategic capital deployment.

For bridge lenders, it’s about sponsor credibility and execution risk. For permanent lenders, it’s about pricing competitively and offering flexible terms. And for sponsors seeking capital, it’s about having a clear story and the track record to back it up.

The West Coast remains a bright spot for capital deployment, particularly in retail and select industrial markets. If you’re looking to navigate debt markets or explore capital solutions for your commercial real estate deals, the insight from lenders and investors on the ground is that flexibility, strong sponsor credentials, and realistic business plans are more valuable than ever.