New York Commercial Mortgage Rates
At Select Commercial, we've built a solid reputation in the New York commercial mortgage sector, offering tailored solutions for a variety of commercial properties across the state, with loans starting at $1,500,000. As experts in commercial real estate financing, we also understand the increasing demand for multifamily investments in New York. Whether you're interested in multifamily units or exploring other commercial property options, our comprehensive commercial mortgage rates page gives a detailed look at the best rates available across the 48 states.
New York Commercial Mortgage Rates - updated 02/22/24
|Loans Over $1,500,000
|Get Free Quote
|Commercial Real Estate Loan
|Up to 75%
|Single Tenant Lease
|Up to 75%
|Business Real Estate Loan
|Up to 90%
New York Commercial Mortgage Benefits
NY commercial mortgage rates start as low as 5.47% (as of February 22nd, 2024)
• A commercial mortgage broker with over 30 years of lending experience
• No upfront application or processing fees
• Simplified application process
• Up to 80% LTV on multi family , 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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Distress is currently low in the commercial real estate market. After Signature Bank and Silicon Valley Bank failed, there was widespread concern that other regional and local banks would fail due to the high levels of commercial real estate loans held in their portfolios. With the exception of some market sectors, most commercial mortgage portfolios have performed well. Usually, during times of market uncertainty, commercial real estate distress levels increase dramatically. Current levels of distress are low by historical standards. At the end of 2022, the level of commercial real estate assets under distress was only 1.2% of the total national sales volume. This number is important to watch as many loans face maturity and higher rates upon refinance in 2023.
MSCI, Inc. estimates the volume of loans maturing in 2023 at $400 billion. The Mortgage Bankers Association pegs the amount at over $700 billion. Many analysts predict that loan defaults will increase for two reasons: many of these maturing loans will need to be refinanced at higher rates (and may suffer cash flow problems) and there are fewer active lenders in the market due to the recent bank failures. Loan underwriting has tightened up as the result of global financial conditions and the average loan to value has been dropping on new originations. Many properties have been able keep pace with the market due to escalating rents and strong appreciation. Other properties, mainly in the office and retail sectors, have suffered due to higher vacancy factors and fixed long-term rental rates. Operating income growth has been strong in the multifamily and industrial markets, which represent about 35% of the maturities in 2023. Revenue growth in the office market has been flat for the past five years and vacancy rates have risen. This sector, which accounts for about 26% of 2023 maturities, is expected to see a significant increase in distress and defaults as many properties will not underwrite well enough to pay off existing loan balances.
In February 2023, Trepp Inc., a data analytics company, reported an increase of commercial mortgage-backed securities loans (CMBS loans) going into special servicing. They estimate the percentage of these loans at 5.2%. Many of these properties, including office buildings and retail centers, may be subject to distressed sales. In addition, many borrowers with adjustable-rate loans also face distress unless they hedged their risk with interest rate caps. These adjustable-rate borrowers are seeing current rates generate debt payments which exceed the net operating income of the property and an inability to raise rental rates to keep pace with the increases in debt service. Many of these borrowers will need to either sell the property in a distress sale or invest more capital into the property and refinance for lower loan amounts.
National, regional, and local banks hold more than half of the total amount of commercial real estate loans which will mature in 2023. So far, we have not seen distress levels high enough that would threaten the financial stability of these institutions. Most lenders are likely to extend impending maturity deadlines as opposed to foreclosing as foreclosure would cause losses. Many will employ other methods, including extensions and workouts, for the foreseeable future.
Most analysts agree that the problems encountered by Silicon Valley Bank and Signature Bank are not applicable to other small and local banks with commercial real estate portfolios. These two large bank failures were caused by much more specific situations. Silicon Valley Bank was too concentrated in the venture capital and technology sectors and did not diversify their lending. Signature Bank was too narrowly concentrated in the cryptocurrency sector, a market sector under intense scrutiny of federal regulators.
The commercial real estate market is very varied. There are many different sectors, geographic areas, and borrower types. Banks that lend to this market are able to diversify their risk by lending to a wide variety of borrowers and limiting their exposure to any one particular area or property type. Lenders who employ diversified lending practices and have conservative underwriting guidelines are likely to experience little or no distress or financial losses during this current market cycle.
Some commercial mortgage lenders lock rates at application, some lenders lock rates at commitment, while others lock rates prior to closing. We are currently in the midst of an increasing rate environment. Rates quoted at application may increase dramatically during the loan application progress, if not locked. It is very important to understand your lender’s procedure upfront to avoid potential confusion.
In order for a commercial mortgage lender to issue a firm loan approval, they will want to understand the financial condition of the borrower, as well as the fundamentals of the property. The borrower will be expected to supply his personal financial statement showing total net worth and liquidity. He will also need to provide a schedule of real estate owned demonstrating experience managing similar properties. Lastly, the borrower’s credit scores will needed. For the subject property, lenders will look closely at the current rent roll, operating statements showing income and expenses, copies of all leases, and other pertinent property information.
Commercial mortgage rates are determined by many different factors, including property type, location of the property, loan-to-value ratio, debt service coverage ratio, debt yield, borrower’s net worth, liquidity, credit rating and level of experience. Commercial mortgage lenders look at all of these factors to determine the riskiness of the loan before setting rates. Loans with the lowest risk profile will get the best commercial mortgage rates. As the potential risk increases, commercial mortgage rates usually increase.
Commercial mortgage loans are viewed differently by lenders than residential loans. Home loan lenders look strictly at the borrower’s income and credit in order to qualify. Commercial mortgage lenders look at the subject property’s rent roll, operating statements, and other factors to determine the cash flow or net income potential. Very strong (low risk) commercial mortgage loans might be priced lower than home loans, while weaker performing properties (higher risk) might be priced higher.
Most commercial mortgage loans today are fixed for 5, 7, or 10 years and come with a 25-30 year amortization schedule. Loans can be recourse (personal guarantee) or non-recourse (no personal guarantee). Commercial mortgage loans typically carry prepayment penalties, whereas residential home loans usually do not. Specific terms will be determined by your lender’s underwriting team after your application is reviewed.
Commercial mortgage lenders typically lend up to 75-80% on an apartment purchase (down payment of 20-25% necessary). On other types of commercial property, commercial mortgage lenders will typically lend up to 70-75% (down payment of 25-30% necessary). An exception is for owner occupied business real estate (such as a business owner buying his own property). Owner/users may qualify for up to 90% LTV financing.
Select Commercial is a leading commercial real estate loan provider. We have excellent commercial real estate loan products and options available for owners and purchasers of commercial real estate. While we lend across the entire continental United States, we are able to give our best commercial mortgage rates and loan programs to certain areas that we feel are strong markets. New York is one of the states that we consider to be a premium market and we actively look to originate good quality loans here for our clients. As an experienced commercial mortgage professional, with over 30 years of lending experience, we have many sources of capital to choose from when placing a commercial mortgage request with a lender. Having many lenders to choose from gives us advantages over any one individual source. Finding the lender that fits the needs of each client is what we do best. In the end, you get the best rate and terms available. If you are looking to obtain a commercial real estate loan, don't hesitate to contact us. There are many reasons why our customers like doing business with Select Commercial. We have a simplified application process and we do not charge any upfront application or processing fees. We typically offer 24-hour pre-approvals with no-cost and no-obligation. Our long term fixed rates are excellent, and we look to close within 45 days of application. Our staff is professional and knowledgeable, and we look forward to working with you on your next commercial mortgage transaction.
New York Office Commercial Real Estate Loan: The 2023 Office Landscape Unveiled
In the heart of the business world, New York's office real estate scene in 2023 is a testament to resilience, innovation, and strategic investment. As the city's businesses adapt to post-pandemic work structures and the rise of hybrid models, New York Office Commercial Real Estate Loans have become indispensable. Dive into the intricate dynamics of the Big Apple's office rentals and the pivotal role of commercial real estate loans.
The Revival of the Concrete Jungle:
Post-pandemic, New York's office spaces are witnessing a renaissance. With businesses embracing hybrid work structures, the demand for flexible and innovative office spaces is surging. New York Office Commercial Real Estate Loans are at the epicenter, enabling businesses to secure prime locations in this bustling metropolis.
The Tech Epicenter and Office Spaces:
New York, a global tech hub, is redefining office environments. As tech giants and startups alike seek spaces that foster creativity and collaboration, commercial real estate loans are becoming the go-to solution for securing state-of-the-art offices.
Rent Dynamics in the Empire State:
With stabilization in rent prices across Manhattan, Brooklyn, and other boroughs, 2023 offers businesses a golden opportunity. Leveraging New York Office Commercial Real Estate Loans, companies can secure favorable lease terms, ensuring stability in this dynamic market.
Amenities: The New Gold Standard:
It's not just about location anymore. Modern offices in New York are replete with amenities ranging from wellness centers to tech lounges. Financing these spaces requires a deep understanding of commercial real estate loans tailored to the city's unique demands.
The Road Ahead:
The trajectory for office spaces in New York is promising. As businesses compete for prime spots and top-tier facilities, commercial real estate loans are becoming increasingly crucial, offering the financial agility businesses need in this ever-evolving market.
The office real estate scene in New York in 2023 is a blend of challenges and opportunities. As businesses navigate this landscape, New York Office Commercial Real Estate Loans are emerging as the trusted ally, fostering growth and innovation. And for those seeking expertise in this domain, Select Commercial boasts a profound understanding of office commercial real estate loans, ensuring businesses are always a step ahead. Get a free quote today and embark on your journey to success.
New York Industrial Commercial Real Estate Loans: A 2023 Insight
In the bustling heart of the United States, New York stands as a beacon for industrial growth and innovation. As 2023 unfolds, the industrial real estate sector in New York is experiencing a transformative phase, driven by technological advancements, evolving business needs, and strategic financing solutions like New York Industrial Commercial Real Estate Loans.
The Big Apple's Industrial Renaissance:
2023 has marked a renaissance for New York's industrial sector. With the rise of e-commerce, logistics centers, and advanced manufacturing units, there's a burgeoning demand for industrial spaces. New York Industrial Commercial Real Estate Loans are playing a pivotal role, enabling businesses to capitalize on this demand and expand their operations.
Tailored Financing for Modern Needs:
Modern industrial properties, such as tech hubs and green manufacturing units, come with specific requirements and considerable investment. New York's tailored commercial real estate loans provide businesses the monetary support they need to venture into these modern sectors, ensuring they remain competitive and innovative.
By the middle of 2023, New York has seen a surge in demand for multifunctional industrial spaces that can cater to diverse business needs. With the aid of commercial real estate loans, businesses are diversifying their investments, tapping into profitable segments, and ensuring steady growth.
Industrial Price Dynamics:
The Industrial Property Price Index for New York in August 2023 indicates a favorable environment for investors. With New York Industrial Commercial Real Estate Loans, businesses can seize properties at attractive rates, promising substantial returns in the long run.
A Promising Horizon:
New York's industrial commercial real estate outlook is promising. As businesses continue to innovate and expand, the need for industrial spaces will surge. New York Industrial Commercial Real Estate Loans will be instrumental in supporting this growth, ensuring businesses have the financial foundation to thrive.
2023 is shaping up to be a transformative year for New York's industrial commercial real estate sector. With businesses poised for growth and the market dynamics favoring investors, New York Industrial Commercial Real Estate Loans stand as the cornerstone for this evolution. For businesses aiming to establish a stronghold, the moment is ripe for investment. Moreover, with institutions like Select Commercial showcasing a profound understanding of industrial commercial real estate loans, acquiring financial support has never been easier. Get a free quote and kickstart your industrial venture here.
New York Retail Commercial Real Estate Loans: The 2023 Retail Revolution
As the epicenter of global commerce, New York's retail scene in 2023 is a blend of innovation, resilience, and strategic foresight. Amidst the backdrop of evolving consumer preferences and the digital shopping boom, brick-and-mortar retail in the Empire State is reinventing itself. New York Retail Commercial Real Estate Loans are becoming the cornerstone for businesses to seize these transformative opportunities.
The Rebirth of New York's High Streets:
Despite the digital shopping surge, New York's iconic shopping streets, from Fifth Avenue to SoHo, are witnessing a revival. Brands are curating experiential retail spaces, and New York Retail Commercial Real Estate Loans are enabling this renaissance, ensuring businesses can secure these prime spots.
Retail Tech Integration:
In the heart of the tech revolution, New York's retailers are integrating cutting-edge technologies into their spaces. From AR fitting rooms to AI-driven shopping assistants, the retail experience is being redefined. Commercial real estate loans are crucial for retailers to finance these tech-forward spaces.
Diversifying Retail Investments:
By 2023, diverse retail formats, from pop-ups to experiential showrooms, are gaining traction in New York. With Retail Commercial Real Estate Loans, businesses can diversify their investments, tapping into various retail formats that resonate with today's consumers.
The New Age of Retail Amenities:
Retail in New York is no longer just about transactions; it's about creating memorable experiences. Modern retail spaces are offering cafes, art installations, and interactive zones. Financing these multifunctional spaces requires specialized commercial real estate loans that understand the nuances of modern retail.
Preparing for the Future:
With projections indicating steady growth in New York's retail sector, businesses are gearing up for the future. From sustainable retail practices to omnichannel integration, the retail landscape is evolving, and commercial real estate loans are ensuring businesses are well-equipped for this future.
The retail pulse of New York in 2023 is vibrant, dynamic, and forward-looking. As businesses adapt to the new retail paradigm, New York Retail Commercial Real Estate Loans are emerging as the trusted partner, driving growth and innovation. For those seeking to navigate this exciting retail journey, Select Commercial offers a profound understanding of retail commercial real estate loans, ensuring businesses have the edge they need. Secure your future in retail with a free quote today.
New York Hotel and Motel Commercial Real Estate Loans: The 2023 Hospitality Renaissance
The iconic skyline of New York has always been a beacon for world-class hospitality. In 2023, both the hotel and motel sectors in the Big Apple are experiencing significant transformations, adapting to post-pandemic traveler behaviors and the evolving tourism landscape. New York Hotel and Motel Commercial Real Estate Loans are becoming the linchpin for businesses to capitalize on these changes and secure prime properties. Let's delve into the intricate dynamics of New York's hotel and motel market and the significance of commercial real estate loans.
The Return of the City that Never Sleeps:
After a challenging period, New York's hotels and motels are witnessing a resurgence in 2023. With international tourism rebounding and domestic travelers rediscovering the city's allure, there's a renewed demand for diverse accommodations. New York Hotel and Motel Commercial Real Estate Loans are playing a pivotal role, enabling establishments to invest in strategic locations and cater to this demand.
Boutique Hotels and Charming Motels: The New Trendsetters:
Travelers in 2023 are seeking unique experiences. Boutique hotels in the heart of the city and charming motels on its outskirts are offering personalized services and a touch of local flavor. Commercial real estate loans are facilitating businesses to tap into this trend, ensuring they stay ahead of the curve.
Tech Innovations in Hospitality:
New York, being a global tech hub, is witnessing the integration of cutting-edge technologies in both hotels and motels. From AI-driven concierge services in upscale hotels to smart booking systems in motels, the hospitality industry is elevating the guest experience. Commercial real estate loans are empowering this tech-driven transformation, ensuring businesses have the financial backing to innovate.
Sustainable and Green Initiatives:
With sustainability becoming a global priority, many hotels and motels in New York are adopting green practices, from solar power to waste reduction. Financing these eco-friendly initiatives requires specialized commercial real estate loans that understand the nuances of sustainable hospitality.
The Future of New York's Hotels and Motels:
The outlook for the hotel and motel industry in New York remains optimistic. As the city continues to attract tourists and business travelers alike, the demand for diverse accommodations will only grow. New York Hotel and Motel Commercial Real Estate Loans will be instrumental in fueling this growth, offering businesses the financial flexibility they need.
The 2023 hospitality landscape in New York, encompassing both hotels and motels, is a blend of tradition and innovation. As businesses navigate this dynamic market, New York Hotel and Motel Commercial Real Estate Loans emerge as the trusted partner, driving growth and innovation. For those seeking expertise in this domain, Select Commercial offers a profound understanding of hotel and motel commercial real estate loans, ensuring businesses are always a step ahead. Secure your future in hospitality with a free quote today.
What areas of New York does Select Commercial provide financing?
Select Commercial provides commercial real estate loans throughout the state of New York including but not limited to the areas below.