Commercial Mortgage Rates

$1,000,000 Minimum
Commercial Mortgage Rates Rates updated September 26th, 2021 Rates (start as low as) LTV
Apartment Loan Rates (Over $6,000,000) 2.58% Up to 80% Get Free Quote
Apartment Loan Rates (Under $6,000,000) 3.22% Up to 80% Get Free Quote
Business Real Estate Loan Rates 3.66% Up to 90% Get Free Quote
Commercial Mortgage Rates 3.66% Up to 75% Get Free Quote

Commercial Mortgage Benefits

Commercial mortgage rates start as low as 2.58% (as of September 26th, 2021)
• No upfront application or processing fees
• Simplified application process
• Up to 80% LTV on multifamily, 75% on commercial (90% with SBA)
• Terms and amortizations up to 30 years
• Loans for purchase and refinance, including cash-out
• 24 hour written pre-approvals with no cost and no obligation

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Recent Commercial Real Estate Loan Closings

Commercial Mortgage Rate Trends in 2021

2021 Multifamily Outlook

Multifamily Loan Multifamily
The availability of jobs in the local market typically controls the rate of household formation.  The COVID-19 pandemic limited the number of young graduates looking for “in-office” jobs.  With many new graduates out of work or working from home, many housing markets were depressed due to lack of demand.  Many within this age group lived with their parents or friends during the pandemic.  During 2021, companies increased hiring and brought many employees back into their offices, causing increased demand for apartment housing.  As more and more young graduates are able to return to work, this trend should continue throughout 2021.  Geographic markets with the highest levels of job availability stand the highest chance of attracting higher numbers of new renters.  As of May 2021, more than nine million jobs were open nationally, and as of June 2021, hiring in the U.S. was up 68% year over year.  Many of the strongest housing markets have been in metro areas in sunbelt states, as the sunbelt states are attracting many young adult workers.  Currently, commercial mortgage rates for apartment properties remain at all-time lows.

2021 Motel Outlook

Motel Loan Motel
The hospitality sector was one of the hardest hit market sectors due to COVID-19.  Business and pleasure travel came to a grinding halt during the pandemic, causing major financial hardship for owners in this sector.  In 2021, we are seeing hotels welcome back business travelers and vacation guests in greater numbers.  Due to vaccinations, many travelers are flying again and staying in hotels.  Hotel occupancy in the spring of 2020 was under 25%.  In the spring of 2021, occupancy was up over 60%.  Although this sector will not see a full rebound until the pandemic is behind us, the demand for rooms is increasing and this should ease some of the financial concerns for hotel owners.  The potential exists for a very strong rebound in 2022 assuming vaccination levels increase and outbreaks of new cases decline.  Current commercial mortgage rates for hospitality depend on the strength of the deal but are not very aggressive due to market fundamentals.

2021 Industrial Outlook

Industrial loan Industrial
Industrial properties are emerging well positioned from the pandemic and are expected to perform well in 2021 and beyond.  The rapid growth of e-commerce, especially during the pandemic, is causing strong demand for industrial and warehouse space.  Properties that are able to be used for warehouse/distribution, and are located near airports, railroads, and highways are outperforming the market in 2021.  While the retail sector has been hurt by the pandemic as shoppers stayed home, we saw companies that focused on e-commerce explode during the pandemic.  We expect this trend to continue in 2022 and beyond as consumers have gotten very comfortable shopping by computer.  2021 has been a strong year for industrial absorption and sales prices of suitable industrial space has skyrocketed.  Industrial properties currently are receiving very attractive commercial mortgage rates as this market is receiving a lot of attention.

2021 Office Outlook

Office Loan Office
The national economy has improved dramatically in 2021 as compared to 2020 as vaccination rates have risen and many employees have returned to their offices.  Many states have lifted or scaled back restrictions and business profitability is increasing.  Corporate profits are increasing as we slowly come out of the pandemic.  Interest rates in 2021 remain at all time lows, allowing companies to consider expansions in the year ahead.  In 2021, we are seeing companies hiring again after a dismal 2020.  During 2021, it is estimated that more than 6.5 million workers will be added to company payrolls, many of them needing office space.  Lenders are not extremely bullish on this sector and commercial mortgage rates, while attractive, are not as low as some other asset classes.

2021 Retail Outlook

Retail Loan Retail
The retail sector was severely affected by the pandemic.  In 2021, we are seeing a realignment in this sector based on the new realities in the market.  E-commerce and online shopping have impacted traditional retail brick and mortar locations.  Traditional retail locations have been hurt, while “experience-based” retailing (dining, leisure, entertainment, etc.) continue to dominate new development, subject to post-pandemic reopening.  Properties that continue to generate foot traffic in 2021 and beyond are the key to success in this market.  Many retail properties that are not able to draw in traffic are being redeveloped and repurposed.  Two areas in this market are thriving: medical space and educational facilities.  In addition, many poorly performing retail locations are being redeveloped as warehouse/distribution centers for online retailers.  This is especially true for properties within easy access to major roads and highways.  We are expecting significant changes in the retail sector in 2021 and beyond.  We are not seeing lenders lend aggressively in this sector and commercial mortgage rates are not as low as other asset classes right now.

2021 Self Storage Outlook

Self Storage Loan Self Storage
Self-storage or mini-storage properties have demonstrated the ability to survive and prosper during the pandemic.  2021 has been a very successful year for this market segment.  Some of the reasons for the success in 2021 are the following: the shift to remote learning, the greater number of employees working from home, the rise in outdoor activities, and the need for many out-of-work employees to downsize or move-in with family members.  All of these situations created demand to create more living space and has caused people to store more of their belongings in storage units.  The national average occupancy rates for storage facilities last year was almost 93%, a record high despite all of the development recently in this sector.  Rents in 2021 rose for the first time in several years.  We are waiting to see what develops in this market after 2021 when the pandemic is over.  Commercial mortgage rates have been fairly low in this asset class.

2021 Mobile Home Park Outlook

Mobile Home loan Mobile Home
Rampant unemployment and underemployment during the pandemic caused many people to downsize and seek more modest living arrangements.  This need for cheaper rental units has caused a growth in lot rentals and mobile home rentals.  2021 saw a significant increase in demand for mobile home and manufactured home communities.  Due to zoning and permitting issues, very few new communities were constructed over the past few years, causing very high occupancy and rental rates during 2021.  Well performing properties in this class are seeing very low commercial mortgage rates right now.

2021 Medical Office Outlook

Medical Office Loan Medical
The medical office sector is performing very well in 2021.  During the pandemic, this portion of the office sector had strong demand as the COVID-19 pandemic created demand for all sorts of health-related space.  The aging population, and the need for health services to accommodate aging seniors, are causing investors to invest strongly in this market in 2021.  As the states continue to reopen, and more employers hire new staff, we continue to see rising employment figures in 2021.  This rapid employment growth has resulted in more people being covered by commercial health insurance, lifting medical spending, and increasing medical office visits.  These factors are causing strong performance in the medical office market in 2021.  Commercial mortgage rates remain very aggressive in this asset class.

2021 Single Tenant Net Lease Outlook

Single Tenant Net Lease Single Tenant Net Lease
Many of the traditional tenants in the NNN market performed well during the pandemic.  Single tenant drugstores, dollar stores, and take-out restaurants outperformed the market and are performing well in 2021.  Other types of tenants, such as sit-down restaurants and traditional retailers underperformed as potential customers stayed home during the pandemic.  We are seeing higher vacancy and lower rents in the latter category.  We are also seeing many single tenant retailers close up shop during 2021 and many of these locations are being repurposed for other business uses.  Many single tenant retailers sit on pads adjacent to poorly performing shopping centers, where vehicle and pedestrian traffic counts are severely reduced.  These retailers will be challenged to survive in 2021 and many will be forced to move to other locations.  Commercial mortgage rates on well performing properties are seeing very attractive rates right now.

Commercial Mortgage Rate Trends in 2020

At the start of 2020 the market outlook did not indicate any significant factors that would cause major trouble in the commercial mortgage market. According to data from Mortgage Bankers Association, commercial mortgage originators expected 2020 to be a great year in the market. About 64 percent of the top commercial real estate firms polled were under the impression that commercial mortgage loan originations would increase this year. Furthermore, 16 percent expected an overall increase of at least 5 percent or more. Moreover, over 40 percent of the firms polled anticipated an increase of over 5 percent in their own firm’s commercial mortgage lending in 2020. In January 2020, MBA released its latest data demonstrating that multifamily and commercial mortgage lenders were expected to close over $680 billion of commercial mortgage loans this year, a 9 percent increase from 2019's record volume of $628 billion. The data indicated that commercial mortgage lenders had remained enthusiastic about making loans. All of the surveyed mortgage originators maintained that just like last year, in 2020 lenders will have a strong appetite to make new commercial mortgage loans. In addition, the vast majority of originators polled believed that borrowers in 2020 will have a strong appetite to take out commercial mortgage loans. Additionally, commercial mortgage professionals expected there to be greater upward pressure on commercial mortgage interest rates. These commercial mortgage rates were expected to continue to be competitive throughout 2020. However, with the current outbreak of Covid-19, the overall economy has been in flux. The stock market has crashed and commercial mortgage interest rates have been severely impacted. Huge metros such as New York have all but shut down much economic activity and entertainment. In this unsteady climate, many investors are scared to purchase commercial real estate and to take out commercial mortgages and apartment loans. Additionally, the oil industry has taken a big hit. Not only are people traveling less due to the pandemic, foreign countries like China and Russia are involved in a huge price war which is driving the price of oil way down. Experts are hopeful that as the weather warms up and public health policy learns how to handle this pandemic, the economy should revert back to its pre-virus strength.

Commercial Mortgage Rate & Terms Rates - Updated September 26th, 2021
Loan Product Rate Amortization
3 Year Fixed 3.66% Up to 25 years
5 Year Fixed 3.66% Up to 25 years
7 Year Fixed 3.80% Up to 25 years
10 Year Fixed 3.88% Up to 25 years
  • Up to 75% LTV
  • Simplified underwriting for small balance loans
  • Loan amounts from $1,000,000
  • Loan to value ratios up to 75%. 
  • Loan to value ratios up to 90% on SBA deals (owner/user commercial properties)
  • Step down and yield maintenance prepayment penalties
  • Nonrecourse loans are available
  • Commercial Mortgage Backed Securities Rates - Updated September 26th, 2021
    Loan Product Rate Amortization
    10 Year Fixed 3.36%-4.25% Up to 30 years
  • Up to 75% LTV
  • Loan amounts from $2 million and up
  • Loans available for apartment buildings, retail shopping centers, office buildings, warehouses and hospitality
  • Loan to value ratios up to 75% on purchases and refinances
  • Cash out refinances are acceptable
  • Interest only loans are available
  • Loans are non-recourse
  • NNN Single Tenant Properties / Credit Rated Rates - Updated September 26th, 2021
    Loan Product Rate Amortization
    3 Year Fixed 3.41% Up to 30 years
    5 Year Fixed 3.41% Up to 30 years
    7 Year Fixed 3.56% Up to 30 years
    10 Year Fixed 3.66% Up to 30 years
  • Up to 75% LTV
  • Credit tenants such as Walgreen’s, CVS, AutoZone, Panera Bread, etc.
  • Up to 75% LTV for purchases and refinances
  • Cash out available
  • Low step-down prepayment penalties
  • Loan terms up to remaining lease term
  • Apartment Building Commercial Mortgage Rates

    Apartment building loan rates are among the best in the commercial mortgage industry. When lenders set the rates for these types of loans, they are encouraged by the short and long term prospects of the rental housing markets. Due to the lower risk of apartment buildings as an investment class, the rates are very low right now. Of course, the type of loan is only one factor when it comes to determining risk. The borrower’s credit worthiness, property location and property condition and many other factors are analyzed. For more information on what commercial mortgage lenders look for in determining the rate you receive, please see our blog article How to Qualify for the Best Commercial Mortgage Rate.

    Fannie Mae Small Balance Apartment Loan Rates - Updated September 26th, 2021
    Loan Product Rate Amortization
    5 Year Fixed 3.03%-3.97% Up to 30 years
    7 Year Fixed 3.06%-4.02% Up to 30 years
    10 Year Fixed 3.26%-4.10% Up to 30 years
    15 Year Fixed 3.65%-4.26% 30 years
    30 Year Fixed 3.98%-4.94% 30 years
  • Tiered pricing from 55% – 80% LTV
  • Simplified underwriting for small balance loans
  • Loan amounts from $1,000,000 - $6,000,000
  • Loan to value ratios up to 80% on purchases and 75% on refinances
  • Cash out refinances are acceptable
  • Pricing based on loan-to-value and debt service coverage ratio:
    • Tier 2 - 75-80%/1.25x
    • Tier 3 - 65%/1.35x
    • Tier 4 – 55%/1.55x
  • Interest only loans are available
  • Step down and yield maintenance prepayment penalties
  • Nonrecourse loans are available
  • Fannie Mae Large Balance Apartment Loan Rates - Updated September 26th, 2021
    Loan Product Rate Amortization
    5 Year Fixed 2.58%-3.40% Up to 30 years
    7 Year Fixed 2.69%-3.43% Up to 30 years
    10 Year Fixed 2.90%-3.62% Up to 30 years
    15 Year Fixed 3.34%-4.01% 30 years
    30 Year Fixed 3.76%-4.32% 30 years
  • Tiered pricing from 55% – 80% LTV
  • Simplified underwriting for small balance loans
  • Loan amounts from $6,000,000+
  • Loan to value ratios up to 80% on purchases and 75% on refinances
  • Cash out refinances are acceptable
  • Pricing based on loan-to-value and debt service coverage ratio:
    • Tier 2 - 75-80%/1.25x
    • Tier 3 - 65%/1.35x
    • Tier 4 – 55%/1.55x
  • Interest only loans are available
  • Step down and yield maintenance prepayment penalties
  • Nonrecourse loans are available
  • Freddie Mac Small Balance Apartment Loan Rates - Updated September 26th, 2021
    Loan Product Rates (start as low as) Amortization
    5 Year Fixed 3.22%-3.79% Up to 30 years
    7 Year Fixed 3.23%-3.86% Up to 30 years
    10 Year Fixed 3.25%-3.92% Up to 30 years
  • Tiered pricing from 55% – 80% LTV
  • Simplified underwriting for small balance loans
  • Loan amounts from $1,000,000 - $6,000,000, up to $7,500,000 in large markets
  • Loan to value ratios up to 80% on purchases and 75% on refinances
  • Cash out refinances are acceptable
  • Pricing based on loan-to-value and debt service coverage ratio:
    • Tier 2 - 75-80%/1.25x
    • Tier 3 - 65%/1.35x
    • Tier 4 – 55%/1.55x
  • Interest only loans are available
  • Step down and yield maintenance prepayment penalties
  • Nonrecourse loans are available
  • Bank Apartment Mortgage Loan Rates - Updated September 26th, 2021
    Loan Product Rate Amortization
    5 Year Fixed 3.45%-3.87% Up to 30 years
    7 Year Fixed 3.70%-4.10% Up to 30 years
    10 Year Fixed 3.88%-4.22% Up to 30 years
  • Tiered pricing from 55% – 80% LTV
  • Simplified underwriting for small balance loans
  • Loan amounts from $1,000,000 - $10,000,000+ Nationwide
  • Loan to value ratios up to 80% on purchases and 75% on refinances
  • Cash out refinances are acceptable
  • Pricing based on loan-to-value and debt service coverage ratio:
    • Tier 2 - 75-80%/1.25x
    • Tier 3 - 65%/1.35x
    • Tier 4 – 55%/1.55x
  • Interest only loans are available
  • Step down and yield maintenance prepayment penalties
  • Nonrecourse loans are available
  • Commercial Mortgage Backed Securities Loan Rates - Updated September 26th, 2021
    Loan Product Rate Amortization
    10 Year Fixed 3.36%-4.25% Up to 30 years
  • Up to 75% LTV
  • Loan amounts from $2 million and up
  • Loans available for apartment buildings, retail shopping centers, office buildings, warehouses and hospitality
  • Loan to value ratios up to 75% on purchases and refinances
  • Cash out refinances are acceptable
  • Interest only loans are available
  • Loans are non-recourse
  • Bridge Loan
    Call for more information

    Business Real Estate Commercial Mortgage Rates

    Business mortgage rates for loans secured by a self-employed realestate owner’s remain low for many types of properties, including: hotels and motels, gas stations, convenience stores, laundromats, doctor's and dentist's offices, other professional offices, warehouses, industrial facilities, auto repair, retail stores, self-storage, day care, liquor stores, assisted living facilities, etc. Most of these property types will qualify for loans up to 90% LTV with very attractive business mortgage rates. Physicians, dentists, veterinarians, and other medical professionals may qualify for up to 100% financing for their medical practices, including working capital. Like other types of commercial mortgage loans, the borrower’s credit worthiness and property details will determine the rate and terms of the loan.

    Owner Occupied Commercial Mortgage Rates - Updated September 26th, 2021
    Loan Product Rate Amortization
    3 Year Fixed 3.66% Up to 30 years
    5 Year Fixed 3.66% Up to 30 years
    7 Year Fixed 3.81% Up to 30 years
    10 Year Fixed 3.88% Up to 30 years
  • Up to 80% LTV
  • Step-down prepayment penalties
  • Loan to value ratios up to 80%, 90% with SBA
  • Loans from $1,000,000 and up
  • 51% or more of the property to be owner occupied
  • Small Business Administration Loan Rates - Updated September 26th, 2021
    Loan Product Rate Amortization
    Adjustable 4.75%-5.75% Up to 25 years
    5 Year Fixed 4.75%-5.75% Up to 25 years
  • Up to 90% LTV, 100% possible
  • Loans for the purchase or refinance of owner occupied properties
  • Relaxed income and credit qualifying guidelines
  • Capital available for working capital, equipment, and accounts receivable
  • Loans up to 90% LTV (100% for certain professional businesses)
  • Loans from $1,000,000+
  • Commercial Mortgage Loans

    Commercial Mortgage Loan Commercial Mortgage Loan

    Select Commercial has excellent products and options available for owners and purchasers of commercial real estate. We arrange financing nationwide for single tenant and multi-tenant properties, including: office, retail, industrial, warehouse, self-storage, healthcare, hospitality, mixed use and specialty use. Our company has multiple capital sources for these loans, including: national banks, regional and local banks, insurance companies, Wall Street conduit lenders, credit unions and private lenders. Whether you are purchasing or refinancing, we have the right solutions available. We will entertain loan requests of all sizes, beginning at $1,000,000.


    We offer long term fixed rates at extremely competitive rates.   Our underwriting is very flexible and we are able to approve commercial real estate loans that many other lenders are unable to approve.  For example, we have specific programs for borrowers with less than perfect credit and those who might need a stated income loan. The bottom line is that we have a specific program for just about every situation. We’ve helped hundreds of customers with their loan requests.  Our personal attention and extensive array of commercial mortgage programs are the hallmark of our success.  We never charge an application fee and we offer written pre-approvals within 24 hours of receiving a completed application.


    If you have contacted other commercial mortgage lenders and been disappointed by their lack of personal service, you’ve come to right place.  We believe in working on all of the details necessary to get your loan approved at the very best rates and terms available in the market.


    Our diverse menu of commercial real estate loan options allows us to finance all types of commercial and investment properties nationwide.  We finance multi-tenant properties such as apartment buildings, retail shopping centers, office buildings and warehouse/industrial properties, as well as single tenant and special use properties such as credit lease properties, restaurants, gas stations and motels.  We lend on investor properties (those rented to others), as well as owner-occupied or owner-user properties which are owned and used for the owner’s business. 


    The loan-to-value ratio on a typical apartment building loan will be between 75% - 80% and we offer fixed rates for up to 30 years.  The loan-to-value ratio on a typical commercial mortgage loan will be 70% - 75% with terms up to 25 years.  On owner occupied properties we will often lend up to 90% and in some cases (medical offices, for example) we will lend up to 100% of the value of the property.


    There are many property types that are often hard to finance with your local bank.  These include very specialized single use properties such as theaters, bowling alleys and skating rinks.  We are actively and aggressively lending on these properties.  We strongly support local businesses and are anxious to help you grow your business.  For business owners, we will also consider working capital and accounts receivable financing.  Again, we are committed to small business owners!


    Whether you are a large developer/property owner or an owner of just one property, we want to be your source for your commercial mortgage loan.  Over the past 30 years we have helped hundreds and hundreds of people purchase and refinance their commercial properties.  Some of our customers come back time and time again (and refer their friends) to take advantage of our superior service, great rates and knowledge of the market.  Borrowing can be confusing – let us show you how we can help.


    If you are in need of commercial mortgage financing, we look forward to speaking with you to discuss your individual needs.  With over 30 years of experience, and countless satisfied customers, you can rest assured that we will be able to satisfy your needs. To discuss your needs, please call us today, toll free at 1-877-548-9454 or complete a confidential free loan request form by clicking this link.