Design Highlights
- Commercial mortgage rates range from 4.93% to 12.75%, varying significantly by loan type and lender.
- Government-backed loans offer competitive rates between 3.5% and 7.0%, appealing to savvy investors.
- Multifamily fixed-rate loans start at 4.55%, making them attractive for long-term investments.
- Bridge loans can start at 9.00%, offering quick financing options for short-term needs.
- Monitoring current rates is essential for informed investment decisions in a volatile market.
Steering through the wild world of commercial mortgage interest rates can feel like trying to find a needle in a haystack—if the haystack were on fire. With rates swinging wildly, savvy investors know that ignoring the current landscape could mean leaving money on the table. As of May 1, 2026, commercial mortgage rates are a mixed bag. They range from a relatively tame 4.93% to a staggering 12.75%. Yes, you read that right. That’s a pretty big gap.
Navigating the chaotic world of commercial mortgage rates is crucial—current rates span from 4.93% to a jaw-dropping 12.75%.
Conventional loans, which should ideally be safe, sit between 5.17% and 8.75%. But don’t get too cozy. Broader commercial real estate (CRE) loans can soar as high as 15%. Talk about a rollercoaster.
For those eyeing permanent bank or agency loans, expect averages to hover around 4.5% to 6%. But let’s be clear; if you fancy high-end private debt, you might be looking at a rate between 8.0% and 14%. Ouch.
Different types of loans come with their own quirks. SBA 504 loans fall between 5.61% and 5.99%, while the 7(a) loans are a tad higher at 5.75% to 8.75%. If you’re into CMBS loans, brace yourself for rates ranging from 6.02% to 7.90%. Bridge loans? They can start at 9.00%. It’s like a game of roulette, but with money involved.
Multifamily properties don’t escape the madness, either. Fixed-rate options hover between 4.55% and 5.65% for five-year terms. But if you fancy going big with multifamily over $6M, rates start at 5.33%. Loan-to-value ratios can reach up to 80% for these types of properties, presenting lucrative opportunities for investors.
Office, retail, and industrial properties? They’re not far behind, with rates starting at 6.34%. Property usage significantly affects loan terms and conditions, making each investment decision that much more critical.
And let’s not forget those government-backed options. They can be surprisingly decent, ranging from 3.5% to 7.0%. It’s like finding an oasis in a desert of higher rates. Just as tenants protect their assets with renters insurance coverage, commercial investors should ensure their properties and financial interests are adequately safeguarded against unexpected losses.
But hold on—regional banks and credit unions are lurking with rates between 6.95% and 10.50%.
In this chaotic landscape, the max loan-to-value (LTV) can go up to 90% for owner-occupied or SBA loans. Terms vary wildly too, stretching from 5 to 25 years, depending on the type.
