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
| Loan Type | Rate* | Max LTV |
|---|---|---|
| 5 Year Fixed | 6.77% | 75% |
| 7 Year Fixed | 6.77% | 75% |
| 10 Year Fixed | 6.77% | 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 are indicative and update with the market. Request a quote for a written rate on your property.
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 | 6.77% | Up to 75% | Stabilized multi-tenant |
| CMBS / conduit | 6.67% | Up to 75% | Larger, well-leased, non-recourse |
| SBA 504 / 7(a) | 6.03% | Up to 90% | Owner-occupied owner-user |
| 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.
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, but the drivers have shifted since the pandemic. E-commerce and supply-chain modernization still support last-mile and bulk-distribution demand, while the biggest new source of industrial growth in 2026 is data centers and the power infrastructure behind the AI build-out. Here is where the market stands as you consider financing.
A shrinking construction pipeline. New supply has pulled back sharply. Industrial space under construction fell about 13% year over year to roughly 220 million square feet, the smallest pipeline since 2019, and 2026 deliveries are projected to run more than 70% below the pandemic peak. Less new space competing for tenants supports existing owners and, over time, occupancy.
Vacancy near its peak. National industrial vacancy sits in the high-7% to high-8% range in 2026, up modestly over the past year, but most analysts believe it has peaked or is close to it as the supply wave clears and construction slows, setting up gradual tightening.
Rent growth still leads all property types. Growth has moderated from pandemic highs, but industrial is projected to deliver roughly 3% rent growth in 2026, the highest of any major commercial property type. Secondary distribution markets such as Nashville and Louisville, less exposed to international trade swings, are among the stronger performers.
Absorption is rebounding. Net absorption in the first quarter of 2026 reached about 40 million square feet, up 52% year over year and the strongest start since 2023, and full-year absorption is forecast near 346 million square feet as conditions stabilize.
Cap rates have reset higher. Industrial cap rates sit around 6% to 6.4%, roughly 120 basis points above their 2022 lows, reflecting the higher cost of capital. With fundamentals firming, further increases appear limited, and some investors are targeting older properties for repositioning.
What is driving demand now. The widely discussed reshoring boom has been muted in the macro data so far, and new tariff and USMCA uncertainty is weighing on cross-border 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.
Why consider financing now. A slowing pipeline, firming absorption, and rent growth that leads the sector make 2026 an opportune time to purchase, refinance or reposition industrial property, particularly with an experienced broker sourcing the best available terms.
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