Best Commercial Real Estate Loan Refinance Rates

Refinancing a commercial real estate (CRE) loan can be one of the most effective strategies to lower your monthly debt payments, unlock trapped equity, or restructure variable-interest debt into a stable fixed-rate mortgage. With commercial mortgage rates hovering between 5.50% and 7.50% depending on property type and borrower qualifications, securing the best refinance rate requires a clear understanding of loan products, lender requirements, and market conditions.

In this guide, we break down today’s top commercial real estate loan refinance rates, key loan options, and actionable steps to secure the lowest rate for your property.

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Current Commercial Real Estate Refinance Rates Overview

Commercial mortgage rates vary widely based on property performance, loan-to-value (LTV) ratio, and debt service coverage ratio (DSCR). Here is a snapshot of current starting rates across major CRE property types:

Property / Loan Type	Average Starting Refinance Rate	Max LTV Ratio	Typical Term
Multifamily (Over $6M)	5.75% – 6.20%	Up to 80%	5, 7, 10 Years Fixed
Industrial & Warehouse	6.50% – 6.90%	Up to 75%	5 to 10 Years Fixed
Retail / Shopping Center	6.60% – 7.10%	Up to 75%	5 to 10 Years Fixed
SBA 504 Refinance	5.90% – 6.30%	Up to 90%	10, 20, 25 Years Fixed
CMBS (Conduit Loans)	6.40% – 7.20%	Up to 75%	10 Years Fixed
Office & Healthcare	6.70% – 7.50%	Up to 70% – 75%	5 to 10 Years Fixed

Top Commercial Refinance Loan Options

Choosing the right refinancing vehicle depends on your property usage, cash-flow stability, and investment horizon:

1. Traditional Bank & Regional Lenders

Traditional banks offer some of the most competitive commercial refinancing rates for prime borrowers with strong credit and high-performing properties.

Best For: Owner-occupied properties and conservative investors.
Key Benefit: Low interest rates and flexible local underwriting.

2. SBA 504 Refinance Loan Program

Government-backed SBA 504 loans allow small-to-medium businesses to refinance existing commercial debt with long-term, fixed interest rates.

Best For: Small business owners occupying at least 51% of the property.
Key Benefit: Up to 90% LTV financing with fully amortized 25-year terms.

3. Agency Loans (Fannie Mae & Freddie Mac)

Agency refinancing is tailored specifically for multifamily properties (apartments, mobile home parks, student housing).

Best For: Apartment property owners seeking non-recourse debt.
Key Benefit: Tier-one pricing starting below 6.00% fixed.

4. CMBS (Commercial Mortgage-Backed Securities) Loans

CMBS conduit loans bundle mortgages into secondary market securities, providing fixed-rate financing for larger asset purchases or cash-out refinancing.

Best For: Multi-tenant retail, industrial, and hospitality properties over $2 million.
Key Benefit: Non-recourse execution with higher leverage capabilities.

Key Factors Lenders Look at When Setting Your Rate

Lenders evaluate risk when determining your customized refinance rate. To get the best rates, focus on improving these metrics:

Debt Service Coverage Ratio (DSCR): Lenders prefer a DSCR of 1.25x to 1.35x or higher (meaning Net Operating Income covers debt service by at least 125–135%).
Loan-to-Value (LTV) Ratio: Keeping your leverage under 65% LTV typically unlocks tier-one discount pricing.
Tenant & Cash Flow Quality: Long-term leases with creditworthy corporate tenants significantly reduce perceived default risk.
Borrower Net Worth & Liquidity: Most institutional CRE lenders require the borrower’s total net worth to equal or exceed the total loan amount.

When Should You Refinance Your Commercial Mortgage?

Refinancing makes financial sense if:

Your current interest rate is significantly higher than prevailing market averages.
Your loan maturity is approaching within the next 6 to 12 months.
Property value has increased, allowing a cash-out refinance for capital improvements or expansion.
You want to transition from a floating-rate bridge loan to a permanent long-term fixed rate.

Summary

Securing the best commercial real estate loan refinance rates requires shopping across multiple lending channels—from local credit unions to SBA and agency programs. By optimizing your property’s DSCR and maintaining lower leverage, you can lock in favorable fixed rates that maximize your long-term cash flow.