San Bernardino Commercial Mortgages
At Select Commercial, we pride ourselves on 35+ years of experience helping clients in San Bernardino 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 San Bernardino 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 San Bernardino commercial mortgage rates as we approach the close of 2024.
San Bernardino 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% | |
San Bernardino 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. San Bernardino 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 San Bernardino 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.
San Bernardino Office Commercial Real Estate Insights: Q3 2023
San Bernardino, one of the Inland Empire's anchor cities, is strategically located east of downtown Los Angeles and north of Riverside. The city's office spaces are evolving to meet the modern needs of businesses, reflecting the broader trends in the region.
Office Market Overview:
The demand for office spaces in San Bernardino is on the rise, with a total of 3,491,763 square feet of office spaces available in 2023. The city offers a mix of Class A, B, and C office spaces, catering to a diverse range of businesses. The proximity to major highways and the San Bernardino International Airport makes it an attractive destination for businesses.
Future of Office Spaces:
Given its strategic location and the broader trends in the commercial real estate market, San Bernardino's office sector is poised for growth. The city is well-equipped to adapt to the changing needs of businesses, ensuring a robust office real estate market in the coming years.
San Bernardino Industrial Commercial Real Estate Insights: Q3 2023
San Bernardino is a prime location for industrial activities, given its proximity to major transportation routes. The city's industrial spaces are evolving to cater to a wide range of businesses, from manufacturing to logistics.
Industrial Market Overview:
With a total of 39,246,382 square feet of industrial space available in 2023, San Bernardino is at the forefront of the industrial real estate market. The city offers state-of-the-art facilities, with a significant portion being Class A industrial spaces. The rise of e-commerce and the need for efficient logistics solutions make San Bernardino a preferred destination for businesses.
Emerging Industrial Trends:
Businesses are increasingly looking for industrial spaces equipped with modern amenities. San Bernardino, with its strategic location and advanced facilities, is well-positioned to cater to these requirements.
San Bernardino Retail Commercial Real Estate Insights: Q3 2023
San Bernardino offers a dynamic retail landscape, catering to both local residents and visitors. The city's retail spaces are adapting to changing consumer behaviors, ensuring a mix of local boutiques and major retail chains.
Retail Market Overview:
With a total of 4,200,050 square feet of retail spaces available in 2023, San Bernardino's retail sector is thriving. The city focuses on providing a unique shopping experience, blending traditional retail with modern shopping solutions.
Future of Retail Spaces:
San Bernardino's retail spaces are not just about shopping; they are about creating memorable experiences. The city is set to offer a unique retail environment in the coming years, adapting to the evolving needs of consumers.
San Bernardino Hotel Commercial Real Estate Insights: Q3 2023
San Bernardino, with its rich history and proximity to recreational activities like skiing, hiking, and camping, attracts a diverse range of travelers. The city's hotels are focusing on enhancing guest experiences, ensuring safety, and offering unique stays.
Hotel Market Overview:
Given its strategic location near the San Bernardino Mountains and National Forest, the city offers a range of accommodation options. Hotels in San Bernardino are integrating modern amenities, ensuring safety protocols, and focusing on personalized experiences for guests.
Adapting to New Travel Norms:
In the post-pandemic world, the emphasis on safety and hygiene is paramount. San Bernardino's hotels are adapting to these new norms, ensuring guests have a safe and memorable stay.
What areas of San Bernardino does Select Commercial provide financing?
Select Commercial provides commercial real estate loans throughout San Bernardino including but not limited to the areas below.