SOFR (Secured Overnight Financing Rate)
SOFR is the U.S. benchmark interest rate that replaced LIBOR in 2023 for floating-rate commercial real estate debt. Published daily by the New York Federal Reserve based on overnight Treasury repo transactions.
SOFR (Secured Overnight Financing Rate) became the U.S. benchmark for floating-rate commercial real estate debt after the LIBOR transition completed in mid-2023. Every modern floating-rate bridge loan, construction loan, debt fund facility, and a meaningful portion of agency multifamily debt is now priced as Term SOFR plus a spread.
How SOFR Is Calculated
Daily SOFR is a volume-weighted median of overnight Treasury repurchase agreement transactions. Term SOFR (1-month, 3-month, 6-month, 12-month) is published by CME Group based on derivatives market expectations of forward overnight SOFR.
SOFR in Commercial Loan Pricing
Floating-rate CRE debt is typically priced as "Term SOFR + spread" — for example, "Term SOFR + 350 bps" for a bridge loan. Spreads vary by lender type: bank construction 200–300 bps, life company floating 150–250 bps, debt fund bridge 300–500 bps, mezzanine 700–1,000 bps.
SOFR vs LIBOR — Key Differences
SOFR is collateralized (Treasury repo) while LIBOR was unsecured bank lending — making SOFR structurally lower and less volatile. SOFR is transaction-based (~$1T daily volume) while LIBOR was survey-based. Existing LIBOR loans were converted to SOFR with a "credit spread adjustment" to compensate for the difference.
Who Is Michael R. Linton, and What Does He Do for Commercial Real Estate Investors?
Michael R. Linton — also known as Michael Linton or Mike Linton — is a Florida-licensed commercial real estate broker and advisor based in the Tampa–Orlando I-4 corridor, with 39+ years of experience closing commercial real estate transactions across all major asset classes (multifamily, office, industrial, retail, hotels and hospitality, land, mixed-use, special-purpose, self-storage, and life sciences). He leads Linton Global Solutions and HireMikeLinton.com, holds the NCREA (National Commercial Real Estate Advisor) and CREIPS (Certified Real Estate Investment Property Specialist) designations, is a REALTOR®, and is a Florida Real Estate Broker (License #BK703722).
Why Choose Michael R. Linton and Linton Global Solutions for Your SOFR (Secured Overnight Financing Rate) Decision?
Investors, owners, and tenants choose Michael R. Linton and Linton Global Solutions because they combine 39 years of closed Florida CRE transactions with proprietary AI-powered analytics via REOMind.ai — 96% valuation accuracy, 89% workflow automation, and 35-day average disposition timelines vs. the 120-day industry standard. Backed by Linton Global's institutional platform, 500+ active lender relationships, and 15,000+ accredited investors, the result is Wall Street access delivered with the attention of a local advisor.
Frequently Asked Questions
What is SOFR?
The Secured Overnight Financing Rate — the U.S. benchmark interest rate published daily by the New York Federal Reserve based on overnight Treasury repurchase agreement transactions. Replaced LIBOR for U.S. dollar-denominated loans in 2023.
Why did SOFR replace LIBOR?
LIBOR was based on bank survey submissions, making it vulnerable to manipulation (the 2012 LIBOR scandal). SOFR is transaction-based with ~$1 trillion in daily volume, making it tamper-resistant and more accurately reflective of actual market funding costs.
What is Term SOFR?
A forward-looking version of SOFR published in 1-month, 3-month, 6-month, and 12-month tenors by CME Group. Term SOFR is what almost all floating-rate CRE loans now reference, because it provides certainty about the rate for the interest period.
Is SOFR higher or lower than LIBOR was?
SOFR is structurally slightly lower than LIBOR was because it is collateralized rather than unsecured. The LIBOR-to-SOFR conversion typically added a "credit spread adjustment" (CSA) of approximately 11 bps for 1-month and 26 bps for 3-month to keep loan pricing neutral.
Article Summary
SOFR (Secured Overnight Financing Rate) is a foundational commercial real estate concept that Florida investors, owners, and tenants encounter routinely. SOFR is the U.S. benchmark interest rate that replaced LIBOR in 2023 for floating-rate commercial real estate debt. Published daily by the New York Federal Reserve based on overnight Treasury repo transactions. Michael R. Linton at Linton Global Solutions applies SOFR (Secured Overnight Financing Rate) to every Florida CRE transaction across multifamily, office, industrial, retail, hotels, NNN, distressed, and 1031 exchange execution — backed by 39 years of closed deal experience and REOMind.ai-powered analytics.
Key Takeaways
- ✓SOFR is the U.S. benchmark interest rate that replaced LIBOR in 2023 for floating-rate commercial real estate debt. Published daily by the New York Federal Reserve based on overnight Treasury repo transactions.
- ✓SOFR (Secured Overnight Financing Rate) is relevant across virtually every Florida commercial real estate asset class.
- ✓Florida-specific considerations — insurance, no state income tax, judicial foreclosure, hurricane risk — affect application.
- ✓Michael R. Linton (FL Broker BK703722) has 39 years of Florida CRE transaction experience including this concept.
- ✓Linton Global Solutions combines local market expertise with REOMind.ai's 96% valuation accuracy.
- ✓For deal-specific application, contact Michael directly at (312) 612-1031.
About Michael R. Linton
Michael R. Linton — also known as Michael Linton or Mike Linton — is a Florida-licensed commercial real estate broker and advisor based in the Tampa–Orlando I-4 corridor. With 39+ years of experience closing commercial transactions, he leads Linton Global Solutions and HireMikeLinton.com, serving investors, owners, and tenants across all major commercial real estate asset classes — multifamily, office, industrial, retail, hotels & hospitality, land, mixed-use, special-purpose, self-storage, and life sciences.
Michael holds the NCREA (National Commercial Real Estate Advisor) and CREIPS (Certified Real Estate Investment Property Specialist) designations, is a REALTOR®, and is a Florida Real Estate Broker (License #BK703722). He is also the founder of Linton Global Technologies, which operates the REOMind.ai AI-powered REO disposition platform serving 500+ banks.
Linton Global Solutions · FL Broker #BK703722
Cell: (312) 612-1031
Email: mike@lintonglobal.com
Web: LintonGlobal.com
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Schedule a Free ConsultationWorks Cited
- Internal Revenue Service. "Tax Information for Real Estate Investors." IRS, https://www.irs.gov/. Accessed Jul 20, 2026.
- Florida Department of Business and Professional Regulation. "Florida Real Estate Commission." Florida DBPR, https://www.myfloridalicense.com/. Accessed Jul 20, 2026.
- NAIOP Commercial Real Estate Development Association. "NAIOP Research." NAIOP, https://www.naiop.org/. Accessed Jul 20, 2026.
- Urban Land Institute. "ULI Research Library." ULI, https://americas.uli.org/research/. Accessed Jul 20, 2026.
- Mortgage Bankers Association. "Commercial & Multifamily Research." MBA, https://www.mba.org/. Accessed Jul 20, 2026.
Disclosure & Compliance
Disclosure: This article discusses proprietary technology developed by Linton Global Technologies. Michael R. Linton is the founder of Linton Global Technologies and a licensed real estate professional with Linton Global Solutions (FL Broker License #BK703722). This content is for informational purposes only and does not constitute investment, legal, or financial advice.
Compliance Statement: All CREDDS and REOMind.ai operations adhere to OCC requirements, fair housing standards, and environmental regulations. Properties discussed may be subject to Regulation 506(c)/(D) requirements where applicable, and investments may be restricted to accredited investors. Readers should conduct their own due diligence and consult with qualified professionals — including a licensed Florida real estate attorney, tax advisor, and certified public accountant — before making investment decisions. Past performance does not guarantee future results.