CRE Refinancing in a Tighter Credit Market: Calculate the Proceeds Gap

By Don McClain | Founder & Principal, Medro Advisors CRE Daily reports tighter CRE lending standards and weaker demand. Fast Commercial Capital’s practical refinance review starts with the gap between a documented payoff and a realistic proceeds estimate. Include transaction costs, required reserves and any cash contribution. Test how lower property income, a different valuation or a shorter amortization would change that gap. Request a current rent roll, operating statements, debt terms and maturity date before comparing financing routes. Record which assumptions a provider has actually accepted and which remain provisional. Discuss the commercial property with FCC. Market-wide tightening does not mean every bank tightened or establish approval, pricing or proceeds.