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 a Oakland multifamily loan, 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. Discover the latest trends in Oakland commercial mortgage rates as we approach the close of 2024.
Oakland Commercial Mortgage Rates - updated 11/21/24
| Minimum Loan Size $1,500,000 | Get Free Quote | ||
|---|---|---|---|
| Loan Product | Rate* | LTV | |
| Multifamily | 5.51% | Up to 80% | |
| Commercial Real Estate Loan | 6.92% | Up to 75% | |
| Single Tenant Lease | 6.62% | Up to 75% | |
| Business Real Estate Loan | 6.72% | Up to 90% | |
Oakland Commercial Mortgage Benefits
CA commercial mortgage rates start as low as 5.51% (as of November 21st, 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
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. 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
What’s going on with commercial mortgage rates in Oakland as we near the end of 2024?
The Federal Reserve’s Federal Open Markets Committee cut the federal funds rate by 50 basis points at its September 18, 2024, meeting. This was the first rate cut since March 2020, when the Fed began a long series of rate hikes to curb the high rate of inflation. The Fed’s decision shows that they believe that inflation is under control and moving into the 2% range that the Fed has set as its goal. The Federal Reserve took this decisive action to prevent further declines in the labor market. The Fed has further hinted at further cuts at its two remaining meetings in 2024, followed by additional cuts in 2025. This rate cut, along with possible future rate cuts, may create positive investor demand for commercial real estate, and may provide aid for commercial mortgage customers, as well as consumers in general. We must caution, however, that the Federal Reserve cuts affect short term interest rates directly and long-term rates only indirectly. The Prime Rate, which is a short-term rate, dropped from 8.50% to 8.00% with the Fed’s recent action. However, most commercial mortgage rates are based on the 5-, 7-, or 10-year treasury rates, and not the Prime Rate. We have seen these treasury rates actually rise since the Fed took its action. On September 18th, the 10-year treasury was roughly 3.70%. Three weeks later, this rate had jumped to 4.03%. Investors are still concerned about future inflation and are adopting a wait and see attitude.
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 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 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 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.