C-PACE financing is continuing a meteoric rise in commercial real estate finance, with volume growing from $2.2 billion in 2024 to $3.6 billion last year, a 63 percent rise. The largest transactions are now well over $100 million, with the biggest deal last year just shy of $500 million. And it continues to be adopted across commercial product types, led by mixed-use and multi-family.
Our industry-wide research data being released today shows C-PACE hit a turning point last year as banks and other institutions almost routinely accept this innovative financing, and borrowers are reaching out in growing numbers to see how it can complete their capital stack.
Among the major takeaways of Bayview’s research:
- Year-over-year growth rose 63 percent, from $2.2 billion to $3.66 billion last year;
- Average loan size increased from $19 million to $39 million, with the largest transactions between $100 million and $500 million;
- Florida recorded the most C-PACE lending in 2025, driven largely by several condo/hotel/mixed-use developments in Miami and South Florida;
- A single Washington, D.C., office-to-residential conversation was the largest, at $465 million;
- While Florida was the most active last year, historically Texas, California and Florida have been leaders at the state level;
- New York City, which accounts for the highest-density commercial real estate of any U.S. jurisdiction, saw its C-PACE program achieve important refinements that boosted activity in 2025 and heralds a strong pipeline into 2026;
- A recent new iteration of C-PACE is combination-financing, where the PACE lender provides both the C-PACE and construction project financing.
Why the major growth in C-PACE financing?
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Acceptance of C-PACE has always been the key, and we’ve seen broader adoption across the commercial property community—borrowers, lenders, brokers, consultants, accounting-advisory and others. Even industry groups like the Mortgage Bankers Association, Urban Land Institute and others are talking about C-PACE, sponsoring discussions and enhancing understanding of its capabilities.
The rate-spreads for C-PACE in conjunction with other financing have also been tightening significantly.
And we’ve seen the application of PACE program guidelines expand beyond energy, HVAC, water/wastewater systems and building envelope to include resiliency measures in many states. These broader applications allow C-PACE to finance more construction components and achieve higher loan-to-cost and loan-to-value benefits than previously possible.
Anne Hill is senior vice president of Coral Gables, Fla.-based Bayview PACE, a division of Bayview Commercial Mortgage Finance providing creative financing solutions that combine C-PACE lending with construction and bridge capital.