Typical Commercial Real Estate Loan Rates in 2026 by Property and Lender

Commercial real estate financing isn’t one product — it’s a half-dozen lender categories with very different pricing, terms, and qualification standards. The right loan for a $2M owner-occupied office is different from the right loan for a $20M stabilized multifamily or a $5M value-add retail strip. This guide breaks down current rates by lender type with the pricing mechanics that drive your final number. For the broader product overview see commercial real estate loans.

Bank CRE Loan Rates

Bank CRE loans (community banks, regional banks, money center banks) are the most common source for $1M–$25M deals. Typical 2026 pricing:

• Strong borrowers + stabilized asset (70–75% LTV, 1.40x+ DSCR): 6.5–7.5% fixed for 5 or 10 years, 25-year amortization with balloon.
• Typical CRE borrower (75–80% LTV, 1.25–1.40x DSCR): 7–8% fixed, 5/25 or 10/25 structure.
• Marginal deals (80% LTV, 1.20–1.25x DSCR, transitional sponsors): 7.5–9% fixed with recourse and additional reserves.
• Floating rate option: SOFR + 2.5–4% (currently ~7–9% all-in), 3- or 5-year term, used when borrower expects to refinance or sell.
• Recourse vs non-recourse: Most community bank deals are full recourse. Non-recourse typically costs 50–150 bps more.

Bank CRE is best for relationship borrowers, smaller deals ($1M–$10M), value-add or transitional assets that don’t fit agency/CMBS criteria, and owner-occupied. Closing time 60–90 days. See CRE closing timeline and down payment requirements.

Life Insurance Company (Life Co) Loan Rates

Life insurance companies are the highest-quality CRE lenders — lowest rates, longest terms, but tightest underwriting. 2026 pricing:

• Top-tier deals (institutional asset, 60–65% LTV, 1.50x+ DSCR, top markets): 5.5–6.5% fixed for 10, 15, or 25-year terms, often fully amortizing.
• Standard life co deals (65–70% LTV, 1.35x+ DSCR): 6–7% fixed.
• Non-recourse standard.
• Minimum loan size typically $5M–$10M. Some have $3M floors; most prefer $10M+.

Life co loans are unbeatable on rate for the right deal: stabilized institutional property in a top-50 market, experienced sponsor, low LTV. Closing 60–90 days, very document-intensive.

CMBS Conduit Loan Rates

CMBS (Commercial Mortgage-Backed Securities) conduit loans are securitized non-recourse loans, typically 10-year balloon with 30-year amortization. 2026 pricing:

• Standard CMBS: 10-year Treasury + 200–325 bps spread → ~6.25–7.5% fixed in May 2026.
• Higher-risk asset types (hotel, retail): Add 50–150 bps to base spread.
• Non-recourse with standard carve-outs (bad-boy guaranty).
• Min loan size $2M; sweet spot $5M–$50M.
• Defeasance: CMBS loans typically have defeasance (not prepayment) clauses, which can cost 5–15% of loan balance to break early if Treasury yields fall.

CMBS is best for stabilized assets where the borrower wants non-recourse and high LTV (up to 75% common). Inflexible mid-loan — hard to modify, refinance, or supplement. See CMBS vs life co vs agency.

Agency Multifamily Loan Rates (Freddie, Fannie, FHA)

Agency loans (Freddie Mac, Fannie Mae, FHA/HUD) are the cheapest source of capital for stabilized 5+ unit multifamily. 2026 pricing:

• Freddie Mac SBL (Small Balance Loan): $1M–$7.5M, ~5.75–6.75% fixed, 5/7/10-year fixed with 30-year amortization, non-recourse.
• Freddie Mac Conventional: $7.5M+, 5.5–6.5% fixed, 5/7/10/15-year terms, non-recourse.
• Fannie Mae DUS: $1M+ (better pricing at $5M+), similar pricing to Freddie. 5.5–6.75% fixed, 5/7/10-year, 30-year amortization.
• FHA 223(f) (refinance/acquisition): 5.0–6.0% fixed, 35-year term + 35-year amortization (fully amortizing), non-recourse, 85% LTV. Cheapest agency option but slowest to close (6–9 months).
• FHA 221(d)(4) (construction): Similar pricing, 40-year amortization. Very slow.

Agency is the right answer for stabilized multifamily of 5+ units with $1M+ debt — almost always cheaper than bank or CMBS. See multifamily down payment requirements.

SBA 504 Owner-Occupied CRE Rates

SBA 504 is the right answer for owner-occupied commercial real estate (51%+ owner-use). Two-part structure:

• CDC/SBA second mortgage (40% of project): 5.5–6.75% fixed for 20 or 25 years (set by SBA debenture rate).
• Bank first mortgage (50% of project): Bank-set, typically 7–9% fixed or variable, 5/25 or 10/25.
• Borrower equity: 10% (or 15% for special-purpose / startups).
• Blended cost of capital: ~6.5–7.5% on financed 90%.

504 is unbeatable for owner-occupied at the 90% LTV plus long-term fixed rate. See SBA loan rates.

Hard Money / Bridge Loan Rates

Hard money or bridge loans are short-term (6–24 months) loans for acquisition, value-add, or refinance situations that don’t fit permanent financing. 2026 pricing:

• Senior bridge (50–65% LTV, stabilized or near-stabilized): 9–11% fixed + 1–3 points origination.
• Value-add bridge (65–75% LTC, repositioning): 10–12% fixed + 2–3 points + interest reserves.
• Heavy lift / construction-style bridge: 11–14% + 2–4 points.
• Term: 6–24 months, often with 1–2 extension options at 0.25–0.50% extension fee.
• Recourse: Usually partial recourse or non-recourse with carve-outs.

Bridge is for situations where permanent financing isn’t available yet — mid-renovation, recently acquired, occupancy below 80%, or sponsor needs to close quickly. See commercial bridge loan rates.

Rate Differences by Property Type

Same lender, different rates depending on property:

• Multifamily (best pricing): 5.5–7% via agency, 6.5–7.5% via bank/life co/CMBS.
• Industrial / warehouse: 6.5–7.5% via bank, life co, or CMBS. Strong asset class in 2026.
• Office: 7–9% — higher spread due to post-2020 risk perception. Class A in top markets prices best.
• Retail (anchored, grocery-anchored): 6.75–8% via bank or CMBS.
• Retail (unanchored, strip): 7.5–9.5%.
• Hotel / hospitality: 7.5–9% via CMBS or bank; SBA 7(a) common.
• Self-storage: 6.75–8.5%.
• Medical office: 6.75–8% (life co favorite for net-leased medical).
• Mixed-use / special purpose: Higher spread; often bank-only.

What Moves Your CRE Rate Within a Lender

• LTV: 65% LTV prices 25–75 bps below 75% LTV on the same deal.
• DSCR: 1.50x DSCR prices below 1.25x DSCR.
• Term length: 5-year fixed prices below 10-year fixed; 10-year prices below 25-year.
• Recourse vs non-recourse: Non-recourse costs 50–150 bps more.
• Sponsor strength: Experienced sponsor with strong net worth and liquidity gets better pricing.
• Property location: Top-50 MSA prices below tertiary markets.
• Cash-out vs rate-and-term: Cash-out refis price 25–75 bps higher than rate-and-term.

Get Matched with CRE Lenders

The fastest way to find the right CRE lender for your deal is to apply through a marketplace that submits to bank, life co, agency, CMBS, SBA 504, and bridge lenders in parallel. Get matched for CRE financing — one app, multiple offers, no impact on initial review. Also see CRE loan requirements, credit requirements, and closing timeline.