Oakland Commercial Mortgages

At Select Commercial, we pride ourselves on 35+ years of experience helping clients in Oakland with their commercial mortgage needs. Our commitment to excellence has helped create our reputation as a top-tier broker in the area. If you're specifically interested in multifamily units in Oakland, we have dedicated resources to guide you. For those seeking comprehensive rates on all loan products available across the 48 states, our comprehensive commercial mortgage rate page offers competitive rates for loans starting at $1,500,000.

Oakland Commercial Mortgage Rates - updated 04/17/24

Minimum Loan Size $1,500,000 Get Free Quote
Loan Product Rate* LTV
Commercial Real Estate Loan 7.02% Up to 75%
Single Tenant Lease 6.82% Up to 75%
Business Real Estate Loan 6.92% Up to 90%
*Rates start as low as the rates stated here. Your rate, LTV, and amortization will be determined by underwriting.

Oakland Commercial Mortgage Benefits

CA commercial mortgage rates start as low as 5.88% (as of April 17th, 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

Our Reviews

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.

Oakland Real Estate Loan CA Commercial Real Estate Loan

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. Oakland is one of the cities 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.

Commercial Real Estate Recent Closings

Oakland office commercial real estate loan Office Loan

Oakland Office Commercial Real Estate Insights: Q1 2023

Oakland, a significant city in Northern California, has been experiencing dynamic changes in its office real estate sector in Q1 2023. The city's strategic location in the Bay Area and its growing tech sector make it a prime destination for businesses.

Office Market Overview:

There has been a noticeable shift in office space dynamics in Oakland. The rise of hybrid work models and the increasing influence of tech companies have led to a reevaluation of office space needs. However, Oakland continues to attract businesses due to its strategic location and vibrant culture.

Adapting to New Work Norms:

With the changing dynamics of work, businesses in Oakland are seeking office spaces that are flexible and can adapt to varying workforce sizes. Commercial real estate solutions in the city are focusing on providing such adaptable spaces to businesses.

Future of Office Spaces:

Oakland's office real estate market is expected to remain resilient. The city's appeal as a business location, combined with the evolving needs of businesses, will shape the future trends of office spaces in the region.

The office landscape in Oakland is intertwined with the broader trends of the commercial real estate market. As businesses navigate the post-pandemic world, the city's office spaces are poised to adapt and cater to these changing needs.

Oakland industrial commercial real estate loan Industrial Loan

Oakland Industrial Commercial Real Estate Insights: Q1 2023

Oakland, with its strategic location near major ports and transportation routes, remains a hub for industrial activities. In Q1 2023, the city's industrial spaces are reflecting the broader trends of the region, catering to diverse businesses from manufacturing to logistics.

Industrial Market Overview:

The demand for industrial spaces in Oakland remains robust. The city's strategic location makes it an attractive hub for businesses that require storage, manufacturing, and distribution facilities. The proximity to major transportation routes further enhances its appeal.

Emerging Industrial Trends:

With the rise of e-commerce and the need for efficient logistics, businesses are seeking modern industrial spaces equipped with the latest technology. Oakland's industrial real estate market is adapting to these needs, offering spaces that can cater to the modern requirements of businesses.

The industrial landscape in Oakland is expected to see steady growth. The city's strategic location, combined with the evolving needs of businesses, will drive the demand for industrial spaces in the coming years.

Oakland retail commercial real estate loan Retail Loan

Oakland Retail Commercial Real Estate Insights: Q1 2023

Oakland, known for its diverse communities and rich culture, offers a unique retail landscape. In Q1 2023, the city's retail spaces are evolving to cater to the diverse needs of its residents and visitors, offering a mix of local boutiques and major retail chains.

Retail Market Overview:

The retail sector in Oakland is adapting to changing consumer behaviors, focusing on experiential retailing and integrating technology to enhance the shopping experience. The city offers a diverse shopping experience, catering to both locals and tourists.

Future of Retail Spaces:

With a focus on providing unique in-person shopping experiences, Oakland's retail sector is expected to thrive. The city's retail spaces are not just about shopping; they are about creating memorable experiences for consumers.

The retail landscape in Oakland is undergoing a transformation. As consumers seek unique shopping experiences, the city's retail spaces are adapting to meet these demands, ensuring a vibrant retail environment.

Oakland motel commercial real estate loan Hotel/Motel Loan

Oakland Hotel Commercial Real Estate Insights: Q1 2023

Oakland, located in the vibrant Bay Area, is a popular destination for both business and leisure travelers. In Q1 2023, the city's hotels are focusing on enhancing guest experiences, ensuring safety, and offering unique stays.

Hotel Market Overview:

With a range of options from luxury resorts to budget accommodations, Oakland caters to a diverse range of travelers. The city's hotels are focusing on integrating technology, ensuring safety protocols, and offering personalized experiences to guests.

Adapting to New Travel Norms:

Post-pandemic, the emphasis on safety and hygiene has become paramount. Oakland's hotels are adapting to these new norms, ensuring that guests have a safe and enjoyable stay.

The hotel landscape in Oakland is poised for growth. With a focus on guest experiences and adapting to the changing travel norms, the city's hotels are set to offer memorable stays to travelers in the coming years.

What areas of Oakland does Select Commercial provide financing?

Select Commercial provides commercial real estate loans throughout Oakland including but not limited to the areas below.

Acorn Industrial, Adams Point, Allendale, Arroyo Viejo, Bartlett, Bella Vista, Broadway Auto Row, Brookfield Village, Bushrod, Caballo Hills, Castlemont, Chabot Park, Chinatown, City Center, Civic Center, Cleveland Heights, Clinton, Coliseum, Coliseum Industrial, Columbia Gardens, Cox, Crestmont, Crocker Highland, Dimond, Downtown, Durant Manor, East Peralta, Eastmont, Eastmont Hills, Elmhurst Park, Fairfax, Fairfax Business, Fairview Park, Fitchburg, Foothill Square, Forestland, Fremont, Frick, Fruitvale Station, Glen Highlands, Glenview, Gold Coast, Golf Links, Grand Lake, Hacienda, Harrington, Harrison Street, Havensourt, Hawthorne, Hegenberger, Highland, Highland Park, Highland Terrace, Hiller Highlands, Ironworks District, Iveywood, Ivy Hill, Jack London Square, Jefferson, Lake Merritt District, Lakeshore, Lakewide, Laney, Las Palmas, Laurel, Leona Heights, Lincoln Highlands, Lockwood Tevis, Loft District, MacArthur Maze, Maxwell Park, Mcclymonds, Meadow Brook, Melrose, Merritt, Merriwood, Mills College, Millsmont, Montclair, Montclair Business, Mosswood, North Kennedy Tract, North Stonehurst, Northgate, Oak Center, Oak Tree, Oakmore, Old City, Old Oakland, Patten, Piedmont Avenue, Piedmont Pines, Pill Hill, Prescott, Produce and Waterfront, Ralph Bunche, Rancho San Antonio, Redwood Heights, Rockridge, San Pablo Gateway, Sausal Creek, School, Seminary, Sequoyah, Shafter, Sheffield Village, Shepherd Canyon, Skyline - Hillcrest Estates, Sobrante Park, South Kennedy Tract, South Prescott, South Stonehurst, St. Elizabeth, Temescal, Toler Heights, Trestle Glen, Tuxedo, Upper Dimond, Upper Laurel, Upper Peralta Creek, Upper Rockridge, Uptown, Waterfront Warehouse District, Waverly, Webster, West Oakland, Woodland, Woodminster.