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Commercial real estate
Commercial Real Estate Loan Rates
See current commercial real estate loan rates for stabilized commercial and investment properties, with pricing that varies by property type, leverage, DSCR, and borrower strength.
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5.20%
Multifamily Starting Rate
6.25%
DSCR Rental Starting Rate
9.00%+
Bridge Loan Rates
5.20%–10.50%
Typical Market Range
COMPARE
Today's Commercial Mortgage Rates
These are current commercial mortgage rates for common asset classes, shown as starting pricing for stabilized, well-qualified borrowers.
Property Type
Starting Rate
Max LTV
Term
Multifamily (Over $5M)
5.20%
80%
5–10 yr
Multifamily (Under $5M)
5.60%
75%
5–7 yr
Industrial / Warehouse
6.20%
75%
5–10 yr
Office
6.25%
70%
5–7 yr
NNN Single Tenant
5.85%
75%
5–10 yr
Medical Office
6.20%
75%
5–10 yr
Small Balance
6.50%
75%
5–10 yr
DSCR Rental (1–9 Units)
6.25%
75–80%
20–30 yr
Bridge Loans
9.00%+
70–75%
12–24 mo
Overview
Compare CRE Rates by Property Category
Compare commercial real estate loan rates across commercial investment, residential / small balance, and specialty / short-term property categories.
Multifamily (Over $5M)
Stabilized apartment complexes
Starting Rate
5.20%
Max LTV
80%
Term
5–10 yr fixed
Amortization
30 yr
Multifamily (Under $5M)
Smaller stabilized properties
Starting Rate
5.60%
Max LTV
75%
Term
5–7 yr
Amortization
30 yr
Small Balance Commercial
Loan size typically under $1–2M
Starting Rate
6.20%
Max LTV
75%
Term
5–10 yr
Amortization
25–30 yr
Office
Stabilized professional buildings
Starting Rate
6.25%
Max LTV
70%
Term
5–7 yr
Amortization
25 yr
Self-Storage
Cash-flow stable facilities
Starting Rate
6.20%
Max LTV
75%
Term
5–10 yr
Amortization
25–30 yr
Owner-Occupied Commercial
Operating business required
Starting Rate
6.40%
Max LTV
70–75%
Term
5–10 yr
Amortization
25 yr
DSCR Rental (1–4 Units)
Based on rental income
Starting Rate
6.25%
Max LTV
10–35%
Term
30 yr
Amortization
Fully amortizing
DSCR Rental (5–9 Units)
Small multifamily
Starting Rate
6.35%
Max LTV
15–35%
Term
30 yr
Amortization
Fully amortizing
Small Balance Commercial
Loan size typically under $1–2M
Starting Rate
6.50%
Max LTV
75%
Term
5–10 yr
Amortization
25 yr
Medical Office
Tenant-driven underwriting
Starting Rate
6.20%
Max LTV
75%
Term
60–70%
Amortization
25–30 yr
NNN Single Tenant
Lease-backed underwriting
Starting Rate
5.85%
Max LTV
75%
Term
5–10 yr
Amortization
25–30 yr
Owner-Occupied Commercial
Operating business required
Starting Rate
6.00%
Max LTV
80–90%
Term
5–10 yr
Amortization
20–30 yr
Bridge Loan
Short-term financing
Starting Rate
9.00%+
Term
12–24 months
Max LTV
70–75%
Amortization
Interest-only
Construction / Renovation
Draw-based structure
Starting Rate
8.00%+
Term
12–36 months
Max LTV
65–75%
Amortization
Interest-only
Hotel
Experience-heavy underwriting
Starting Rate
9.00%+
Term
5–10 yr
Max LTV
60–70%
Amortization
25 yr
Motel
Higher risk pricing
Starting Rate
6.75%+
Term
5–7 yr
Max LTV
60–70%
Amortization
20–25 yr
Mobile Home Park
Niche underwriting
Starting Rate
6.20%+
Term
5–10 yr
Max LTV
70–75%
Amortization
25–30 yr
Special Purpose
Case-by-case underwriting
Starting Rate
6.50%+
Term
5–10 yr
Max LTV
60–75%
Amortization
20–30 yr
Rate Factors Explained
What Determines Your Commercial Mortgage Rate?
These are the main factors that determine commercial mortgage interest rates, including asset type, leverage, DSCR, sponsor quality, and market conditions.
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Property Type
Core asset classes receive stronger pricing.
Loan-to-Value (LTV)
Higher leverage increases rate risk.
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Debt Service Coverage (DSCR)
1.25x+ receives best pricing.
Borrower Credit & Experience
Stronger sponsors = better terms.
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Loan Term
Longer fixed periods may price higher.
Market Location
Primary markets receive better pricing.
Common Questions
Frequently asked questions
These answers cover the most common questions about CRE loan rates, rate drivers, and how pricing changes by loan type and property risk.
Clear answers before you apply. No credit impact during pre-screening.
What are current commercial real estate loan rates in 2026?
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Current CRE rates in 2026 by loan type: Conventional Permanent: 6.50–8.00%. SBA 504: approx. 6.00–7.00% (blended). SBA 7(a): Prime + spread (up to 2.75%). Bridge Loans: 8.50–12.00%+. Construction: Prime + 1.50–3.00%. Rates fluctuate with Treasury yields and SOFR.
What factors most affect the interest rate I'll receive?
The 7 key rate factors: (1) Credit score: 720+ qualifies for best rates; 680 is standard. (2) LTV: 65% LTV gets better rates than 75%. (3) DSCR: 1.40x+ earns the best pricing. (4) Property type: Multifamily/Industrial are favored; Hospitality/Retail are higher rate. (5) Loan size: Larger loans ($2M+) often get better spreads. (6) Borrower experience. (7) Market location.
What is the difference between fixed and variable rate commercial loans?
Fixed-rate: Rate stays constant for the term (5–10 years). Best for long-term holders. Variable/Floating: Rate adjusts periodically based on SOFR or Prime. Bridge loans are almost always floating rate. SBA 504 uses a fixed rate for the debenture portion.
How do prepayment penalties work on commercial real estate loans?
Commercial loans usually have prepayment penalties. Step-down penalties (e.g., 5-4-3-2-1%) are common on bank loans. Yield maintenance or Defeasance are common on CMBS loans (expensive to exit). SBA 7(a) has a 5-3-1% penalty only for terms of 15+ years. Always model your exit before closing.
How do commercial loan rates differ by property type?
Lenders price risk based on property type. Multifamily and Industrial typically command the lowest rates (tightest spreads). Retail and Office generally see rates 0.25%–0.50% higher due to vacancy risks. Hospitality and Special Purpose properties often carry rates 0.50%–1.00% higher than multifamily due to management intensity and specialized use.
Can I lock in a commercial real estate rate before closing?
Yes, but it varies. Commitment Lock: Locks the rate after underwriting approval for 45–90 days (most common). Application Lock: Rare and often requires a fee. SBA 504: The rate is set at the time the debenture is sold (after closing), so you float until then. Construction: Permanent loan rates are typically not locked until the project nears completion.
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