Routine CRE loan closing costs run roughly 1.5% to 2.5% of loan amount: lender legal ($25K to $100K+), appraisal /environmental/engineering ($15K to $40K), title and survey ($10K to $50K), recording taxes (state-specific), and lender fees (origination of 0.5% to 1.0%, exit on bridge of 0.25% to 1.0%). Higher on construction.
Where do the dollars go?
Origination fee (lender): 0.5% to 1.0% of loan on perm; 0.5% to 1.5% on bridge; 1.0% to 2.0% on debt fund construction. Paid at closing.
Lender legal: $25K to $50K on routine perm; $50K to $100K on construction; $75K to $200K+ on complex multi-property or multi-state. Paid by borrower out of closing.
Third-party reports: appraisal $5K to $25K; Phase I environmental $3K to $8K; engineering/property condition $5K to $15K; zoning $3K to $10K; survey $5K to $25K. Paid by borrower outside closing or escrowed at term sheet.
Title insurance: roughly 0.4% to 0.8% of loan amount, varies by state. Recording and mortgage tax: highly state-specific (NY ~$5/$1,000 + city tax; FL 35 cents per $100, or $3.50 per $1,000, under section 201.08, Florida Statutes; many states under $1/$1,000).
What is the borrower's leverage on closing costs?
Lender legal cap. Most institutional lenders accept a borrower-side cap on lender legal of $X (negotiated upfront in the term sheet). Without a cap, lender legal can balloon during closing.
Origination fee. Almost always negotiable on competitive deals; standard in noncompetitive direct-to-lender.
Third-party reports. Mostly fixed by market, but the borrower can shop appraisers (lender-approved) for cost and timeline.
Sources
- Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations · Mortgage Bankers Association · 2026-Q1