Retail Shopping Center Loans

Loans from $1 Million to $25 Million+

Retail Shopping Center Loan Interest Rates - Rates updated October 3rd, 2022

Loan Product Rates (start as low as) LTV
5 Year Fixed Rates 5.96% Up to 75% Get Free Quote
7 Year Fixed Rates 5.88% Up to 75% Get Free Quote
10 Year Fixed Rates 5.73% Up to 75% Get Free Quote
shopping center Retail Shopping Center Loan

Select Commercial has many different retail mortgage loan programs available for the purchase or refinance of retail shopping centers, retail strip malls, and retail properties. We lend nationwide and our minimum loan size starts at $1,000,000. Our shopping center lending program includes the following:


Multi-tenanted retail shopping centers that are located in suburban and urban locations with a minimum population of 50,000 people. We will consider anchored retail shopping centers with a major anchor tenant, un-anchored shopping centers, retail strip centers, and other retail properties consisting of multiple rental tenants. We prefer deals with good quality long-term tenants and a stabilized cash flow. However, we will consider all properties that make sense and have a good “story”.


Owner occupied retail stores are a big portion of our business. Many self-employed retail borrowers own their own property and often have difficulty obtaining bank financing for their properties. We are very eager to work with self-employed borrowers who own their own properties or are looking to purchase a property to house their retail business. We lend on all types of retail properties including special use and single use properties such as gas stations, free standing grocery stores, restaurants, and skating rinks, just to name a few. We will also work with self-employed borrowers on a “stated-income” basis, if needed.


Another very active area under our shopping center loan program consists of lending on NNN (triple net leased) properties that are leased to credit tenants. Some examples of these tenants include, CVS, Walgreens, AutoZone, Family Dollar, Starbucks, etc. We are very aggressive with our rates and loan terms with these types of single tenant credit tenants.


Very often, a shopping center suffers from high vacancy due to tenants that have moved out or when the property needs a cash infusion for tenant improvements. We are pleased to offer a bridge loan program to allow borrowers to access capital to renovate and upgrade their tenant base. Our bridge loan program is very helpful to owners who are looking to reposition their properties for the future.


We are a nationwide commercial mortgage broker specializing in all types of commercial mortgage loans, apartment loans, multifamily loans, and credit tenant lease loans.

Our Retail Shopping Center Loan Benefits

Retail Shopping Center Loan rates start as low as 5.73% (as of October 3rd, 2022)
• A commercial mortgage broker with over 30 years of lending experience
• No upfront application or processing fees
• Simplified application process
• Up to 75% LTV (90% with SBA financing for owner occupied properties)
• Terms and amortizations up to 25 years
• Loans for purchase and refinance, including cash-out
• 24 hour written pre-approvals with no cost and no obligation

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Select Commercial Funding Reviews from TRUSTPILOT

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"Thanks Stephen for all of your hard work in getting our deal closed! I appreciate your professionalism and patience throughout a complicated process. You always were there for my partner and I whenever we had questions and needed answers quick. It was a pleasure to have worked with you and Select Commercial!"


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Shopping Center Loan Outlook for 2021 - Commercial Mortgage Rates

The COVID-19 pandemic seriously depressed the demand for apartment living space across the Unites States. One of the biggest factors that directly impacts apartment demand and household formation is a given market’s availability of jobs. The pandemic caused many people to be out of work and many other people to work remotely. Consequently, many prospective tenants such as new graduates lived with their parents or friends. With increased hiring in 2021 and many people returning to their in-office jobs, there has been a big rise in the demand for nationwide apartment housing. As more and more young graduates can return to work, this trend should continue throughout 2021. Commercial mortgage rates for apartment buildings have been at all-time lows throughout 2021 and experts don’t anticipate them to go up soon. The office and retail sectors did not fare so well in 2020 due to the pandemic. Many businesses shut down, brick and mortar retail shops had a hard time doing business and many companies implemented work from home policies. Many lenders were very conservative when considering commercial mortgage applications for these sectors. With vaccinations increasing and many states removing restrictions, business profitability has risen throughout 2021. In 2021, we are seeing companies hiring again after a dismal 2020. During 2021, it is estimated that more than 6.5 million workers will be added to company payrolls, many of them needing office space. Commercial mortgage lenders are not extremely bullish on the office sector and commercial mortgage rates, while attractive, are not as low as some other asset classes. Meanwhile, we are not seeing commercial mortgage lenders lend aggressively on retail properties in 2021. While the loans that lenders do fund may be at lower commercial mortgage rates, they aren’t as low as other asset classes and borrowers are having a difficult time obtaining high leverage loans in 2021.

Industrial properties are emerging well positioned from the pandemic and are expected to perform well in 2021 and beyond. The rapid growth of e-commerce, especially during the pandemic, is causing strong demand for industrial and warehouse space. 2021 has been a strong year for industrial absorption and sales prices of suitable industrial space has skyrocketed. Industrial properties currently are receiving very attractive commercial mortgage rates as this market is receiving a lot of attention. Experts believe that close to $578 billion of commercial mortgages and multifamily loans will be funded in 2021. This is over a 30% increase from 2020’s volume of $442 billion. As commercial mortgage rates remain at all-time lows, 2021 is a great time for prospective borrowers to look for commercial mortgage loans. Right now in 2021, commercial mortgage rates can be in the high 2% range for qualified properties and borrowers. Apartment loans above $6 million can qualify for rates in the mid- high 2% range while apartment loans below $6 million are generally being underwritten in 2021 in the low to mid 3% range. Many lenders are financing commercial mortgage loans for other asset types in the low to mid 3% range as well in 2021. Check out our low commercial real estate loan rates and use our commercial mortgage calculator to calculate monthly principal and interest.

The coronavirus pandemic caused major disruptions in financing for many single use properties, including shopping center loans. Many locations were forced to close and remain closed for many months. Other properties were able to survive by operating outdoors or by offering pickup and delivery services. Financing for shopping center loans in 2021 is available for those businesses that were able to survive the pandemic, remain in business, and demonstrate a path to profitability post pandemic. Lenders in 2021 want to offer shopping center loans for those businesses that are deemed good credit risks and are able to make their payments. shopping center loans for businesses that have not returned to profitability in 2021 will found it very difficult to obtain financing.

2020 Retail Shopping Center Outlook

While brick and mortar stores have had some difficulty in this new e-Commerce era, there are some reasons to look positively on the retail sector heading into 2020. Firstly, retailers and tenants are reporting both strong traffic and sales numbers. Back in October, Levin Management Corporation asked store managers in their 15 million square ft. portfolio about these two crucially important indicators. 71.4% of respondents reported either same or higher year-to-date sales -- a full 10 percent higher than the five-year period between 2013 and 2017. Similarly, about 68% of survey participants reported either same or higher store traffic in 2019. Secondly, independent retailers and small businesses have been increasingly active, particularly within the dining and personal services categories that can’t be acquired online. This is a very positive trend for shopping center investors. Mom-and-pop shops add a little bit of flavor to a property’s tenant mix, which is important today in creating a sense of diversity and appeal. In today’s economy, many shoppers want to patronize local businesses and support stores that offer unique services and products outside the norm. Thirdly, technology advancements are creating new opportunities for enhanced shopping center operation and marketing. Solar, LED lighting, automatic faucets are increasing sustainability by lowering expenses. The integration of digital tools with brick and mortar commerce is critical to creating both shopper interest and engagement. For these three reasons the retail sector is showing some positive signs as we head into 2020.