Commercial Real Estate Loans by Property Type

Loan terms by property type

Property type	Usually financed as	Max LTV	Typical DSCR	Lenders size the loan on
Multifamily	Investment	80% (Agency)	1.20–1.25x	Rent roll, trailing-12 income and rents against the market
Retail	Either	75% (bank)	1.25x+	Leases, weighted lease term (5+ years) and occupancy
Industrial	Either	75%	1.25x+	Lease income or the owner’s cash flow; clear height and loading docks
Warehouse	Either	75%	1.25x+	Lease income; clear height (24 ft+), docks and submarket vacancy
Self-Storage	Either	75%	1.25x+	Economic occupancy, rate card against the market, trailing-12 expenses
Mixed-Use	Either	80%	1.20x+ (combined)	Combined income of the residential and commercial space
Office	Either	80% (investor)	1.25x+	Leases (3+ years remaining), tenant credit and occupancy
Medical Office	Owner-occupied	Up to 90% (SBA)	1.20x+ (global)	Practice revenue and the tenant-improvement budget
Restaurant	Owner-occupied	90% (SBA)	1.25x+ (global)	Business cash flow, buildout budget and operating history
Dental Office	Owner-occupied	90% (SBA)	1.20x+ (global)	Practice production; buildout priced per operatory
Auto Dealership	Owner-occupied	90% (SBA)	1.25x+	Dealer financial statements and the manufacturer’s franchise approval
Auto Repair	Owner-occupied	90% (SBA)	1.20x+ (global)	Shop revenue history and a Phase I environmental report
Gym & Fitness	Owner-occupied	90% (SBA)	1.25x+	Active memberships, revenue per member and buildout
Hotel	Owner-operated	85% (SBA 504)	1.30x+	RevPAR, ADR and occupancy over 12 months; the brand flag
C-Store & Gas	Owner-operated	85% (SBA 504)	1.25x+	Fuel gallons, inside sales and fuel-tank (UST) compliance
Car Wash	Owner-operated	85% (SBA 504)	1.25x+	Cars per day, revenue per car and memberships

Typical ranges, updated September 2026. Your terms depend on the property, the borrower and the lender.

All property types

Retail A retail property loan finances storefronts, strip centers, shopping centers and single-tenant net-lease buildings. Investors use bank, DSCR or CMBS loans, sized on the leases and tenant quality; a business that occupies its storefront can use SBA 504 with as little as 10% down. Learn more
Industrial An industrial property loan finances warehouses, distribution centers, manufacturing facilities and flex space. Investors use bank, DSCR or CMBS loans, typically up to 75% of value; a business that occupies the building can use SBA 504 with as little as 10% down. Learn more
Multifamily A multifamily loan finances an apartment building of five or more units — the point where residential mortgages stop and commercial lending begins. Agency loans from Fannie Mae and Freddie Mac go up to 80% of value; bank, DSCR and CMBS loans are the alternatives, at about 6.25–8.75%. Learn more
Warehouse A warehouse loan finances a building used for storage, distribution or fulfillment, including cold storage. Investors use bank, DSCR or CMBS loans, typically up to 75% of value; a business that occupies the warehouse can use SBA 504 with as little as 10% down. Learn more
Medical Office A medical office loan finances a building used for healthcare — a physician practice, outpatient clinic or surgery center. Practitioners who occupy it can use SBA 504 or 7(a) with up to 90% financing; investors buying a leased medical building use bank or DSCR loans. Learn more
Hotel A hotel loan finances the purchase, renovation or refinance of a hospitality property, underwritten on its operating income rather than leases. Owner-operators often use SBA 7(a) or 504; larger and flagged hotels use bank, CMBS or bridge loans, typically 55–70% of value. Learn more
Restaurant A restaurant property loan finances the building a restaurant operates from — buying it, building out the space or refinancing. Owner-operators who occupy the property can use SBA 504 or 7(a) with as little as 10% down; investors buying a leased restaurant use bank or DSCR loans. Learn more
Self-Storage A self-storage loan finances the purchase, construction or refinance of a storage facility, underwritten on its rental income and occupancy. Bank, DSCR and CMBS loans typically go up to about 75% of value; construction and lease-up are usually financed with a bridge or construction loan first. Learn more
Mixed-Use A mixed-use property loan finances a building that combines commercial space — usually ground-floor retail or office — with residential units above. Lenders underwrite both income streams; bank and DSCR loans go up to about 80% of value, and an owner-occupant may qualify for SBA. Learn more
Dental Office A dental office loan finances the space a practice operates from — buying the building or condo, financing a buildout, or acquiring a practice with its real estate. Dentists who occupy the space can use SBA 504 or 7(a) with as little as 10% down. Learn more
Auto Dealership An auto dealership real estate loan finances the land and buildings a dealer operates from — showroom, service bays and lot — to buy, expand, refinance or complete an OEM image upgrade. Owner-operators often use SBA 504 or a bank loan, at about 6.25–8.75%. Learn more
Auto Repair An auto repair shop loan finances the building a repair business operates from — buying the garage, adding service bays or refinancing. Owner-operators can use SBA 504 with 10–15% down, and shop equipment can be financed alongside it. Learn more
Office An office building loan finances the purchase or refinance of office property, from a single-tenant building to a multi-tenant complex. A business that occupies the space can use SBA 504 with as little as 10% down; investors use bank or DSCR loans, typically up to 75–80% of value. Learn more
C-Store & Gas A gas station or convenience store loan finances the property and, for an owner-operator, often the business with it. Owner-operators commonly use SBA loans with 15% down, since lenders treat these as special-purpose properties; investors buying a net-leased c-store use DSCR or bank loans at about 6.75–8.75%. Learn more
Car Wash A car wash loan finances the purchase, ground-up construction or refinance of a car wash property — express tunnel, self-serve or full-service. Owner-operators often combine SBA or bank financing for the real estate with equipment financing for the wash system. Learn more
Gym & Fitness A gym or fitness center loan finances the facility — buying the building, a buildout in leased space, or an expansion — often alongside equipment financing. Owner-operators can use SBA loans with 10–15% down; bank loans suit established operators. Learn more

Owner-occupied or investment? The answer picks the loan

The same building can be financed two very different ways, depending on who uses it.

Your business moves in

Owner-occupied

Your business uses at least 51% of an existing building, or 60% of a new one.

Loans: SBA 504, SBA 7(a), bank owner-user loans
Down payment: From 10% with SBA (15% special-purpose or a new business)
Rate: 6.25–7.25% SBA 504
Term: Up to 25 years, fixed on the SBA portion
Lender looks at: Your business’s cash flow and the owners’ credit

Owner-occupied loans

Tenants pay the rent

Investment property

You lease the space to others. SBA does not finance buildings held for rent.

Loans: Bank, DSCR, CMBS; agency for apartments
Down payment: 25–35% bank, 20–25% DSCR
Rate: 6.5–8% bank, 6.75–8.75% DSCR
Term: 5–10 years on a 25–30 year amortization
Lender looks at: The property’s net operating income — usually 1.20–1.25x the payment

Investment property loans

Mixed use? If your business occupies at least 51% of an existing building, SBA counts it as owner-occupied and the rest can be leased out. Rates as of September 2026.

SBA 504 loans by property type, FY2025

SBA 504 is the long-term, fixed-rate loan for a building your business occupies. In fiscal 2025 (Oct 1, 2024 – Sep 30, 2025) SBA approved 6,762 of them. This is how they split across the property types we cover, from SBA’s own loan-level data.

Property type	504 loans	Median financed (bank + SBA)	Median SBA share
Restaurant	601	$1.6M	$725K
Industrial	538	$2.3M	$1.1M
Medical Office	451	$1.0M	$459K
Hotel	414	$5.6M	$2.3M
Warehouse	354	$2.2M	$992K
Auto Repair	267	$1.3M	$566K
C-Store & Gas	125	$3.0M	$1.2M
Gym & Fitness	109	$2.8M	$1.2M
Car Wash	99	$3.5M	$1.3M
Dental Office	90	$1.4M	$646K
Auto Dealership	74	$1.8M	$787K
Self-Storage	62	$2.3M	$1.1M
All 504 loans	6,762	$1.7M	$747K

Source: U.S. Small Business Administration, 7(a) & 504 FOIA loan data, data as of June 30, 2026; loans approved in fiscal 2025. The building’s use is read from the industry code (NAICS) of the business that occupies it: warehouse includes wholesale distributors, industrial includes manufacturers. Financed is the bank first loan plus SBA’s share, before the borrower’s down payment; a few 504 loans finance long-life equipment rather than a building. Office, retail, mixed-use and apartment buildings are left out: 504 loans for offices and shops are recorded under the occupant’s industry — a dental practice, a law firm — and SBA does not finance buildings held for rent. Full SBA lending report →

How it works

Name the property and its use Tell us the property type and whether your business will occupy it (SBA: at least 51%) or it is an investment. That one answer decides which programs apply.
Share the numbers that drive it Rent roll and T-12 for income property; business financials for owner-operators — plus STR reports for hotels, membership reports for car washes and gyms, gallons and inside sales for gas stations.
Talk to an advisor An advisor contacts you within one business day and names the lenders active in your property type, from 30+ banks, SBA, CMBS, DSCR and bridge lenders.
Compare term sheets Rate, leverage, reserves, prepayment and recourse side by side, in writing, with our compensation shown before you sign.
Appraisal, reports and closing The lender orders the appraisal and third-party reports — environmental reviews are standard for gas stations, auto repair and industrial sites — then closes.

When a loan closes, BestLoanUSA may receive part of the broker fee paid on that loan. You never pay us to apply or to get advice.

Frequently asked questions

Which property types get the most SBA 504 loans?

In fiscal 2025 SBA approved 6,762 504 loans. Among the property types we cover, the most went to restaurant (601), industrial (538), medical office (451), hotel (414). The largest were hotels, with a median of about $5.6M financed between the bank loan and SBA’s share. 504 only finances buildings the business occupies, so apartments and buildings held for rent do not appear. See the full table.

What is a special-purpose property for an SBA loan?

A building designed for one kind of business that would be costly to convert — for example car washes, hotels, gas stations and urgent care facilities. SBA 504 needs at least 15% down on a special-purpose property, or 20% if the business is two years old or less, instead of the usual 10% (13 CFR 120.910).

Do I have to occupy the property to get a commercial loan?

No — but occupancy decides the program. If your business will occupy at least 51% of an existing building (60% of a new one), SBA 504 and 7(a) are available with as little as 10% down. Space leased to others does not count, so a business using three bays of a 20-bay warehouse finances it as an investment with a bank, DSCR or CMBS loan instead.

Which commercial property types are easiest to finance?

Lenders usually have the most options for stabilized apartments and industrial buildings with long leases, because the income is predictable. Hotels, special-purpose properties and buildings with short or expiring leases draw fewer lenders, lower leverage or higher pricing — lenders size those on operating cash flow, re-leasing risk or a downside scenario.

How do lenders value a commercial property?

An appraiser weighs the income approach (net operating income divided by a market cap rate), recent sales of similar properties and, for specialized buildings, replacement cost. For owner-operated special-purpose properties, the business’s cash flow carries more weight, and specialized buildout — medical, restaurant or car wash systems — can appraise below what it cost.

How much down payment do I need for a commercial property?

With SBA 504, 10% for an established business buying a general-purpose building it will occupy, 15% for a newer business or a special-purpose building, 20% for both. Bank loans on investment property usually need 25–35% and DSCR loans 20–25%. The property’s income can require more than the loan-to-value cap alone — see the multifamily and hotel examples.