Written & reviewed by Stephen A. Sobin, President of Select Commercial Funding LLC
Property Type
Industrial Property Loans
Select Commercial arranges industrial property loans for the purchase and refinance of warehouse, distribution, manufacturing and flex-industrial buildings from $1,500,000. We finance multi-tenant and single-tenant industrial, including owner-occupied buildings up to 90% with SBA, and offer a bridge program for properties that need rehab or lease-up. Compare today’s commercial mortgage rates.
Get a Free QuoteIndustrial Loan Rates & Terms
Rates updated as of August 23, 2026
| Loan Type | Rate* | Max LTV |
|---|---|---|
| 5 Year Fixed | 6.76% | 75% |
| 7 Year Fixed | 6.89% | 75% |
| 10 Year Fixed | 7.06% | 75% |
- Loan amounts from $1,500,000, no maximum
- Up to 75% LTV on industrial, up to 90% with SBA for owner-users
- Purchase, refinance and cash-out
- Terms and amortizations up to 30 years
- No upfront application or processing fees
- 48-hour written pre-approvals, no cost or obligation
Rates last updated August 23, 2026. Rates and maximum LTV shown represent our best-case pricing scenarios. Actual rates, LTV, and loan terms are subject to underwriting approval and may vary.
Industrial by the Numbers: Q2 2026
Industrial demand snapped back in 2026. National industrial market data as of Q2 2026 (July 2026) showed:
- 6.8% national vacancy, down 60 basis points in the quarter, with modern Class A big-box space tighter still at 5.8%.
- 99.1 million SF of net absorption, nearly double the first quarter and roughly seven times the year-earlier pace.
- 175.7 million SF of leasing, up 49.4% year over year, the strongest quarter in more than three years; big-box leases over 500,000 SF rose 58.3%.
- $10.45/SF average asking rent, with landlords in the tightest markets regaining pricing leverage.
- 276 million SF under construction, still far below the pandemic peak, keeping new competition limited.
Tenants are paying up for modern buildings with power availability, clear height and automation readiness, a flight to quality that mirrors the office market.
Compare Your Industrial Loan Options
As a broker we compare every lender type and route your deal to the best fit. Typical starting points:
| Program | Typical rate* | Max leverage | Best for |
|---|---|---|---|
| Bank / portfolio | 6.76% | Up to 75% | Stabilized multi-tenant |
| CMBS / conduit | 6.66% | Up to 75% | Larger, well-leased, non-recourse |
| SBA 504 | 6.03% | Up to 90% | Owner-occupied real estate and equipment |
| SBA 7(a) | 6.75% | Up to 90% | Owner-user, acquisition and working capital |
| Bridge | 9.00% | Up to 80% LTC | Value-add, lease-up, rehab |
Life insurance company financing is also available for institutional-quality industrial assets, often at the lowest long-term fixed rates and conservative leverage. Most industrial lenders look for a debt-service-coverage ratio (DSCR) of about 1.25 to 1.35, and SBA owner-occupied financing requires your business to occupy at least 51% of the space.
Rates last updated August 23, 2026. Rates and maximum LTV shown represent our best-case pricing scenarios. Actual rates, LTV, and loan terms are subject to underwriting approval and may vary.
Industrial & Warehouse Properties We Finance
Select Commercial is a nationwide commercial mortgage broker providing warehouse and industrial building loans for the purchase and refinance of industrial, warehouse, distribution and light-manufacturing properties from $1,500,000. Our current programs cover three broad situations, each structured to the property and the borrower:
- Multi-tenant warehouse, distribution and light manufacturing in suburban or urban locations with a minimum population of roughly 50,000 residents. These buildings typically house light manufacturers, warehouse and distribution companies and storage operators. We will consider metal-constructed buildings as well.
- Single-tenant, owner-occupied industrial where the owner runs their business from the property. We specialize in self-employed borrowers buying or refinancing their own industrial or warehouse building, including borrowers whose credit or provable income does not meet typical bank standards, and we can offer owner-users up to 90% financing through SBA.
- Un-stabilized properties with expired leases or a rent roll that needs tenant improvements. Our bridge loan program makes capital available for rehab, upgrading and modification so an owner can stabilize the property and refinance into permanent financing.
Financing Options for Industrial Property
As a broker, we match your industrial deal to the right capital source rather than pushing a single product:
- Bank and portfolio loans for stabilized multi-tenant industrial, with flexible, relationship-based underwriting.
- SBA 504 and 7(a) for owner-occupied industrial, up to 90% financing, ideal for self-employed owner-users.
- CMBS / conduit for non-recourse financing on larger, well-leased industrial assets.
- Bridge loans for acquisition, lease-up and rehab of transitional industrial property, with a clear path to permanent debt.
Industrial Real Estate: 2026 Outlook
The U.S. industrial market remains a central pillar of commercial investment, and after two slower years the demand engine restarted in 2026. E-commerce and supply-chain modernization still support last-mile and bulk-distribution demand, while data centers and the power infrastructure behind the AI build-out add a new source of growth.
Vacancy has turned down. National industrial vacancy fell to about 6.8% in Q2 2026 (July 2026 data), down 60 basis points in a single quarter, with Class A big-box space tighter at 5.8%. Supply and demand are back in balance as developers throttle groundbreakings.
Leasing is the strongest in three years. Q2 2026 leasing reached 175.7 million SF, up 49.4% year over year, and net absorption hit 99.1 million SF, nearly double the first quarter. Big-box requirements over 500,000 SF rose 58.3% as large occupiers restarted expansion.
Rents are firming. Average asking rent reached $10.45/SF in Q2 2026, and landlords in the tightest markets are regaining pricing leverage. Secondary distribution markets such as Nashville and Louisville, less exposed to international trade swings, remain among the stronger performers.
Supply stays disciplined. About 276 million SF was under construction in Q2 2026, well below pandemic-era peaks, and deliveries continue to trail demand. Less new space competing for tenants supports occupancy and renewals for existing owners.
What is driving demand now. Alongside logistics, the clearer growth story is data centers: U.S. data-center power demand is expected to rise from about 31 gigawatts in 2025 to 41 gigawatts in 2026, with record-low vacancy in hubs like Northern Virginia and Atlanta, pulling capital and land toward power-served industrial sites. Reshoring adds light-manufacturing demand in business-friendly states such as Texas, Ohio and Arizona.
Why consider financing now. Falling vacancy, the strongest leasing in three years and disciplined supply make 2026 an opportune time to purchase, refinance or reposition industrial property. See where demand is concentrated in our strong industrial markets, and match value-add deals to a bridge loan with a stabilize-and-refinance plan.
Strong Industrial Markets in 2026
Logistics hubs and port-served metros continue to lead industrial demand, joined by fast-growing inland and secondary markets where land and labor costs are lower:
- Inland Empire (Riverside, CA): the nation’s premier big-box logistics market, with deep tenant demand and limited land.
- Dallas-Fort Worth: central location, a strong development pipeline and steady absorption.
- Atlanta: a top distribution hub with strong bulk-warehouse rent growth.
- Chicago: the leading rail hub, with ongoing tenant expansions and resilient rents.
- Phoenix: rapid population growth, manufacturing investment and strong absorption.
- Savannah and other port markets: expanding container volumes keep warehouse demand elevated.
- Kansas City, Louisville, Memphis and Reno: inland logistics and light-manufacturing hubs with favorable land and labor costs.
We arrange industrial financing in all 50 states. Compare today’s commercial mortgage rates.
Why Finance Industrial With Select Commercial
With more than 30 years of experience and relationships across banks, credit unions, HUD, CMBS, SBA, life company and private lenders, we present industrial loan requests that get a lender’s prompt attention, and we identify the right source for each borrower. There are no upfront application or processing fees, and we issue written pre-approvals within 48 hours at no cost or obligation.
What Our Clients Say
“As a real estate attorney, I trust that Select Commercial will deliver apartment building loans and commercial mortgages in a timely manner. The rates and terms offered are excellent. I heartily recommend them.”
David S. · New York City“I needed an SBA loan and found Select Commercial. It was obvious Stephen knew everything about commercial loans. If you are starting a small business, definitely give them a call.”
Larry S. · Washington, DC“Select Commercial offered 100% financing for my medical practice when my bank would have required 20% down. They delivered something my bank could not, and handled everything professionally.”
John C. · Boston, MA“Select Commercial was very helpful with my multifamily mortgage. Stephen went over several options and we came up with the best lender to meet my needs. I got the funds and also lowered my payments.”
Gary M. · Portland, ORGet Your Industrial Loan Quote
No cost, no obligation. Written answers within 48 hours on industrial property loans from $1,500,000.
- No application or processing fees
- Written answers within 48 hours
- For 5+ unit and commercial properties, $1.5M and up