Finance Commercial Real Estate May 2026

CRE deals are often layered. The "Capital Stack" describes the priority of repayment. At the bottom is Senior Debt (the safest position), followed by Mezzanine Debt or Preferred Equity , and finally Common Equity at the top. The higher you go in the stack, the higher the potential return, but the greater the risk of loss if the project fails.

These are bundles of commercial loans sold to investors as bonds, providing liquidity to the market. finance commercial real estate

The traditional route for construction and bridge loans. CRE deals are often layered

These provide more flexible, albeit more expensive, capital for "value-add" projects that need renovation or repositioning. The higher you go in the stack, the

The rate of return based on the income the property is expected to generate. The Changing Landscape

A measure of the cash flow available to pay the mortgage. A DSCR of 1.25 means the property earns 25% more than its debt obligations.