Commercial Property Financing in 2026

Commercial real estate financing requires a different approach than residential loans. Whether you're looking to acquire office buildings, retail spaces, industrial properties, or multi-family complexes, understanding the 2026 market is essential for securing the best terms.

Commercial Loan Types in 2026

Conventional Commercial Loans

Traditional bank loans for commercial properties typically require 25-30% down and strong borrower credentials. Interest rates range from 6-8% depending on property type and borrower qualifications.

SBA 7(a) Loans

Small Business Administration loans offer competitive rates and lower down payments for eligible properties. Maximum loan amounts reach $5 million with terms up to 25 years.

Commercial Hard Money

For properties that don't qualify for traditional financing, hard money provides short-term solutions. Rates typically run 10-15% with points of 2-4%.

Current Market Rates

Key Requirements

• Down Payment: Typically 25-35% of purchase price
• NOI Requirements: Properties must demonstrate strong net operating income
• Documentation: 2-3 years of tax returns, rent rolls, and property financials
• Credit Score: 680+ for conventional; 650+ for alternative financing

Strategies for Success

In 2026's competitive market, preparation is key. Build relationships with commercial lenders before you need financing. Have your financial documents organized and be ready to explain your business plan. Consider working with a commercial mortgage broker who has access to multiple lending sources.