Written & reviewed by Stephen A. Sobin, President of Select Commercial Funding LLC
Commercial Property
Commercial Real Estate Loans
Select Commercial is recognized for its expertise in commercial mortgage lending, with loans starting at $1,500,000. We finance every major commercial property type across the 48 contiguous states and work to deliver the best rates and a tailored solution for each. For pricing on all loan products, see today’s commercial mortgage rates.
Get a Free QuoteCommercial Property Types We Finance
From a single tenant building to a large shopping center, we arrange financing on all major commercial property types nationwide:
Retail / Shopping Center
Office Building
Industrial / Warehouse
Self-Storage
Medical / Healthcare
Mobile Home Park
Hotel / Motel
NNN / Single-Tenant
Manufacturing
Motel
Dental Practice
Underlying Co-op
1031 Exchange
Investment Property
Special Purpose
Restaurant
Gas Station
Car Wash
Marina
Bowling Alley
Campground / RV Park
Commercial Real Estate Loan Rates
Commercial mortgage pricing depends on the property type, loan size, leverage and the strength of both the borrower and the property’s cash flow. The starting rates below are a snapshot across our most requested products. For live pricing on every program, see our commercial mortgage rates page, which we update regularly.
| Loan Type | Rate* | Max LTV |
|---|---|---|
| Multifamily / Apartment | 5.68% | 80% |
| Retail, Office & Industrial | 6.76% | 75% |
| CMBS Conduit | 6.66% | 75% |
| NNN / Single-Tenant | 6.36% | 75% |
| SBA 504 (Owner-Occupied) | 6.03% | 90% |
| Bridge | 9.00% | 75% |
Rates last updated August 22, 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. See all current commercial mortgage rates →
How Commercial Real Estate Loans Work
A commercial real estate loan is underwritten primarily to the property, not just the borrower. Lenders look first at whether the building’s income comfortably covers the debt, then at leverage, the sponsor and the market. Understanding the main terms helps you compare offers on equal footing:
- Loan-to-value (LTV): The loan amount as a percentage of the property’s value. Most stabilized commercial properties finance up to 75%, while multifamily can reach 80%.
- Debt service coverage ratio (DSCR): Net operating income divided by the annual mortgage payment. Lenders typically look for a DSCR of 1.25 or higher, meaning the property earns at least 25% more than it needs to cover the loan.
- Amortization and term: Commercial loans commonly amortize over 25 to 30 years with a fixed-rate period of 5, 7 or 10 years, after which the loan matures or resets.
- Loan amount: Select Commercial arranges financing from $1,500,000 with no maximum, across the 48 contiguous states.
Because terms vary widely by capital source, working with a commercial mortgage broker lets you compare agency, bank, CMBS, bridge and private options side by side rather than accepting the first quote. See today’s commercial mortgage rates or request a free quote to get started.
Investment Property Loans
Most commercial real estate loans are investment property loans: financing for income-producing buildings you own as an investor rather than occupy. As a commercial mortgage broker, Select Commercial compares agency, bank, CMBS, bridge and private capital sources and matches your property and business plan to the loan with the best terms and the highest certainty of closing. If your business will occupy the building, see our business (owner-occupied) loans.
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“I am a veterinarian who purchased an existing practice. I was surprised to find a company that offered 100% financing at a good rate, with great terms and rates for medical office financing.”
Carol K. · Chicago, IL“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, MAGet a Free Commercial Mortgage Quote
No cost, no obligation. Written answers within 48 hours on commercial 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
Commercial Real Estate: 2026 Outlook
2026 is a refinancing and repositioning year. An estimated $875 billion of commercial and multifamily mortgage debt matures in 2026, about 17% of the $5.0 trillion outstanding (Mortgage Bankers Association, February 2026), and investor sentiment has improved, with the industry outlook score rising to 2.81 from 2.75 in the latest national survey. Sector by sector, using data as of mid-2026:
- Multifamily: about 4.3% national vacancy in Q2 2026 with 167,000 units absorbed, and agency lending capacity up 20.5% to a combined $176 billion. See our apartment loans for properties under $6 million.
- Industrial: vacancy fell to about 6.8% in Q2 2026 on 99.1 million SF of absorption, the strongest leasing in more than three years.
- Retail: the tightest major sector, about 6.0% vacancy versus a 7.4% long-run average, with new construction at a 20-year low and rents up 2.2% year over year.
- Office: a selective recovery, 20.1% national vacancy but trailing-year absorption of +14.3 million SF, the best since 2020, with leasing at a post-pandemic high.
- Hotels: RevPAR forecast up 0.6% to 0.9% for 2026 with a World Cup tailwind, and about 30% of hotel mortgage balances mature this year, the most of any type.
- Medical office: record 92.7% occupancy as of March 2026 with construction starts near 1% of inventory.
- Self-storage: stabilizing, with the national street rate at $135 (June 2026) and a development pipeline near just 2.3% of inventory.
- Manufactured housing: 95% occupancy and 6.8% lot-rent growth through Q1 2026, among the strongest fundamentals anywhere.
- Net lease: single-tenant cap rates steady at 6.82% overall in Q2 2026, with retail at 6.60%.
Owners with maturing debt should start 6 to 12 months early. Compare today’s commercial mortgage rates across every program.
The Hottest Commercial Real Estate Markets in 2026
National surveys and mid-2026 sector data agree on where momentum is concentrated. The Emerging Trends in Real Estate 2026 survey ranks Dallas/Fort Worth, Jersey City, Miami, Brooklyn and Houston as the top markets to watch, and the performance data backs it up:
- Dallas / Fort Worth, Texas: the #1 market to watch in the 2026 national survey, with $2.6 billion of office sales through June, second most in the country.
- Miami, Florida: the lowest big-metro office vacancy in the U.S. at about 12.5%, a top-5 market to watch, and a magnet for finance and tech relocations.
- Manhattan / Brooklyn, New York: the office recovery leader, 13.1% vacancy, the nation’s highest rents and $4.3 billion in sales through June, plus the #1-ranked multifamily investment market. Nearby Jersey City ranks #2 nationally to watch.
- Houston: a top-5 market to watch with over $1 billion in 2026 office sales and deep industrial demand.
- Indianapolis, Indiana: the #1-ranked multifamily investment market for 2026 (Spring 2026 rankings), with rent growth above the national average for 30 straight months.
- Phoenix, Arizona: above-average apartment absorption as its supply wave clears, plus manufacturing investment and industrial growth.
- Riverside (Inland Empire), California: the nation’s premier big-box logistics market, with deep tenant demand and limited land.
- Chicago, Illinois: deep capital markets, the country’s leading rail hub and a top-10 multifamily market, with buyers re-entering at reset prices.
- Nashville, Tennessee: the highest apartment absorption score in the 2026 rankings, with tourism and healthcare employment powering demand.
- Salt Lake City, Utah: the #3 multifamily investment market, with absorption well above its historical average.
Every market above links to our local financing page, and the full list of state pages is below. For apartment-specific data, see the metro snapshots on our multifamily loans page.
Commercial Mortgages by State
We arrange commercial mortgages nationwide. Explore financing state by state: