Hey, got your eye on a strip mall churning rent checks or a warehouse primed for Amazon overflow, but the banker’s giving you the runaround? Commercial real estate loans are the heavy lifters powering $20 trillion in US properties from apartment blocks to office towers and flex industrial spaces. Heading into 2026, with $1.5-2 trillion loans hitting maturity walls and Fed cuts easing rates to 6-8%, it’s a borrower’s window amid bank pullbacks and private credit surging. These aren’t your cookie-cutter home loans; they’re cash-flow beasts with DSCR ratios, LTV caps, and balloons that demand sharp underwriting. This laid-back deep-dive (around 1980 words) is for real folks like you syndicators flipping value-adds, family offices scaling portfolios, or REIT hopefuls not suits in towers. We’ll slice through types, rates, quals, traps, and tables to match your play. Fancy 70% LTV at SOFR+250bps? Ditch the jargon; let’s plot your funding without the fluff.
Commercial Real Estate Loans US 2026: Your No-BS Guide to Funding That Next Big Property DealWhy 2026’s a Pivot Point for CRE Lending
Maturity crunch forces refis at higher rates banks tightened 67% in ’23, now just 9% per surveys, unlocking deals. Private/family office debt fills gaps for transitional plays. Multifamily volumes up 13% YoY, industrial steady, office wobbly. Perks: Non-recourse options, interest-only periods. Risks: Recourse guarantees, refi squeezes. Avg terms: 65-75% LTV, 1.25x DSCR, 20-30yr amorts. Pro move: Stress test at +200bps.
Permanent Term Loans: The Anchor for Stabilized Assets
Banks/life cos fund 90%+ occupied properties multifamily, retail, industrial. Fixed 6.5-8%, 10-25yr terms, 25-30yr amorts. JPMorgan-style: SOFR-based variables, agency for apartments (Fannie/Freddie 80% LTV).
Gold for supermarkets or Class A offices.
| Type | LTV | Rate (2026 Est) | Term/Amort | Best Property |
| Bank Permanent | 70% | 6.75-7.5% | 10yr/25yr | Retail/Office |
| Agency Multifamily | 80% | 6-6.5% | 30yr/30yr | Apartments |
| Life Co | 75% | 6.5-7% | 25yr/25yr | Industrial |
Agency yields lowest.
Bridge Loans: Fast Cash for Flips and Rehabs
Non-bank speed (2-4 weeks) 75-85% LTC, 9-12% rates, 12-36mo terms. Hard money for quick closes, family offices for 18mo value-add (e.g., 80-unit reno pushing rents 20%). Fees 2-4 points.
2026 hot: Office-to-mixed transitions.
| Bridge Style | Rate | Fees | Term | Use Case |
| Hard Money | 10-12% | 3-5% | 12-24mo | Acquisitions |
| Family Office | 8-10% | 2% | 18-36mo | Stabilizations |
| Bank Bridge | 7.5-9% | 1-2% | 24mo | Near-stabilized |
Bridge flips equity fast.
Construction and Mini-Perm: Ground-Up Warriors
18-36mo interest-only, 70-80% LTC, 8-11% floating. Draws tied to progress. Mini-perms bridge to permanent common for hotels/self-storage.
Industrial spec builds dominate.
SBA Lifelines: Small Biz and Owner-Users
7(a): $5M max, 90% guarantee, 25yr RE terms, prime+2.25% (~8%). 504: $15M split (bank/CDC/equity), 20-25yr fixed 6-7%, 10% down. Express for $500K quickies.
Hotels, owner-occupied goldmines.
| SBA Option | Max | Rate | Term | Equity |
| 7(a) | $5M | 8-9% var | 25yr | 10-20% |
| 504 | $15M | 6-7% fixed | 25yr | 10% |
| Express | $500K | 9% | 10yr | 10% |
504 fixed-rate dream.
CMBS/Conduit: Non-Recourse Scale
Pooled bonds $10M+ deals, 70% LTV, 5-10yr terms/30yr amort, 6.5-8%. Office/retail fit, spreads ~180bps over swaps.
No personal risk, but prepays sting.
Private Credit Boom: Filling Bank Voids
Debt funds/family offices at 8-11%, mezz 12-15%. Flexible for mixed-use, special-use (RV parks, senior housing). Up 4% sourcing preference.
| Lender Type | Close Time | Rates | Recourse | Min Deal |
| Big Banks (JPM) | 60-90 days | 6.5-8% | Often | $1M |
| Non-Bank Bridge | 2-4 wks | 9-12% | Selective | $500K |
| SBA | 45-90 days | 7-9% | Yes | $250K |
| Private/Family | 4-6 wks | 8-11% | Rare | $2M |
Private for creative.
2026 Rates: SOFR Rules the Roost
SOFR ~4.5% +200-400bps. Fixed via swaps. Multifamily cheapest (6%), office priciest (7.5%). Cuts tip 6-7.5% avg.
| Asset Class | Fixed | Variable (SOFR+) | DSCR Min |
| Multifamily | 6.25% | +2.5% | 1.25x |
| Industrial | 6.75% | +2.25% | 1.25x |
| Office | 7.5% | +3% | 1.35x |
| Retail | 7.25% | +3% | 1.3x |
Industrial borrows easy.
Underwriting Essentials: Cash Flow Over Credit
NOI forward-looking, 1.25-1.35x DSCR stressed. 20-30% equity/skin. 660+ FICO helps, but sponsors’ track record rules. Reserves 6mo, WAULT 5+yrs leases.
Self-employed? DSCR/stated income options.
| Key Metric | Requirement | Pro Tip |
| DSCR | 1.25-1.35x | +2% stress |
| LTV/LTC | 75%/80% | As-is vs cost |
| Occupancy | 85-90% | Credit tenants |
| Equity | 25% avg | Liquidity proof |
NOI = loan lifeblood.
Fees and Structuring: 2-4% Entry Sting
Orig 1-2%, appraisal $5-10K, Phase I env $3-5K, legal $10K+. IO periods 1-3yrs, step-down prepays.
| Fee Type | $5M Loan Cost | Shop It? |
| Origination | $50-100K | Yes |
| Appraisal/Env | $10-15K | Yes |
| Legal/Title | $15K | Yes |
| Exit Prepay | 1-2% yr1 | Negotiate |
Total under 3% target.
Maturity Wall Strategies: Refi or Extend
$1.7T due extend-amend or bridge to perm. Banks active again, private bridges maturity plays.
Risks: Guarantees, Balloons, Distress
99% small deals recourse springing bad boy. Balloon refi at higher rates. Office glut (vacancies 20%). Fix: Oversize DSCR, fixed swaps.
Buddy’s tale: $10M industrial bridge at 10%, stabilized/refi 6.75% bank spread captured.
Lender Menu: From JPM to Hard Money
JPM/Wells: $500K-$25M relationships. Regionals/SBA: Small. Agora/ABO: CA-focused bridge. Family Offices: Patient value-add.
Sample Deals: Run Your Pro Forma
$10M warehouse (7% cap): $7M loan, 1.3x DSCR @7%, $60K/mo.
| Deal Size | Loan | Rate/Term | P&I Mo |
| $5M Multi | $4M | 6.5%/25yr | $28K |
| $20M Office | $14M | 7.5%/20yr | $115K |
| $2M Strip | $1.5M | 8%/15yr | $15K x |
Multi scales best.
2026 Winners: Multi/Industrial Over Office
Multifamily +13% vol, industrial e-com tailwind. Avoid hospitality/office.
Read More: Real Estate Investment Trusts in UK 2026: Your Casual Guide to Property Profits Without the Hassle
Lock-In Roadmap
- Pro Forma: NOI/DSCR model.
- Pitch 5 Lenders: Bank/private/SBA.
- Term Sheet: Haggle.
- DD/Appraisal: 45 days.
- Fund: Wire day.
| Phase | Timeline | Cost |
| Model/Shop | 2wks | Free |
| Underwriting | 4wks | $20K |
| Close | 45-60days | 2-3% |
CRE debt = leverage rocket.