**Petros PACE Finance SVP Connor Murch on the Evolving Role and Strategic Power of C-PACE in 2026**
A decade ago, Commercial Property Assessed Clean Energy (C-PACE) financing was a relatively unknown and narrowly viewed financial tool in the commercial real estate space. Today, it’s a widely utilized and strategic form of capital. Connor Murch, Senior Vice President of Originations at Petros PACE Finance, shares insights into the evolving landscape of C-PACE in 2026, and how developers and property owners can leverage it more effectively.
**Q: C-PACE has experienced steady growth since inception. Do you expect that growth to continue, and how has its role in the capital stack evolved?**
**Connor Murch:** The evolution of C-PACE over the last decade has been significant. Back in 2016, many saw it as niche or simply “green capital.” That view has shifted. While C-PACE continues to support energy-efficient measures, developers now recognize it as a strategic part of the capital stack. In many cases, developers are securing C-PACE financing first and then structuring the rest of their capital stack around it.
A major driver behind this shift has been broader institutional adoption. Lenders and investors now view C-PACE not just as a gap-filler, but as a low-cost, flexible financing source. That’s why we’re seeing a move away from sub-$10 million deals in favor of larger projects — some even exceeding $100 million or $200 million. And that growth trajectory is likely to continue as more institutional players understand what C-PACE has to offer.
**Q: What are developers and owners looking for in a C-PACE provider today?**
**CM:** With recent interest rate fluctuations, C-PACE has become a more attractive financing tool, but the lowest rate is no longer the only priority. Developers today want certainty of execution. They are seeking partners they can trust — teams that communicate clearly and deliver with consistency.
At Petros, we’ve deliberately structured our team to provide a streamlined experience. Our originations and underwriting teams collaborate closely during the closing process alongside in-house legal support. This continuity matters. Developers value having a single point of contact — someone who owns their project and guides it from beginning to end.
**Q: When should owners or developers engage with Petros on a project, and why does timing matter?**
**CM:** The earlier, the better. C-PACE is more than a financing option; it’s part of a comprehensive development strategy. At Petros, we consider ourselves part of the development team — a true partner. With early engagement, we can align with senior lenders, contribute to capital stack planning, and help navigate local and state ordinances early in the process.
We’ve built strong relationships with key lenders and city officials across the country, and we leverage that experience to help clients turn plans into actionable, fundable projects. Early engagement maximizes the chances of success.
**Q: What sets Petros apart in terms of navigating C-PACE program or policy challenges?**
**CM:** One major differentiator is our in-house policy expertise and multi-market experience. If a project is based in a city or county that hasn’t adopted a C-PACE program yet, we’ll research and work to identify pathways forward. If a refinancing deal appears to be outside the program’s lookback window, we’ll engage directly with administrators to assess solutions.
We don’t see obstacles — we see opportunities to problem-solve on behalf of our partners. Our objective is to move projects forward in alignment with the owner’s financial and sustainability goals.
**Q: What advice would you give to developers or owners considering C-PACE in today’s market?**
**CM:** Commercial real estate is fluid — and capital markets even more so. In such a dynamic environment, having a trusted financing partner is essential. You need someone who understands your business plan inside and out, helps you navigate changes, and stays focused on execution.
The right C-PACE partner is both agile and consistent, helping you build, renovate, or refinance with confidence. Ultimately, that relationship is the key to unlocking the full potential of C-PACE financing.
Today, success in using C-PACE doesn’t just come from understanding the product — it comes from the strength of your partnerships and the precision of execution.
