Best Commercial Real Estate Loans 2022

Buy, build, or beautify your business property with these commercial real estate financing options.
Best overall
Lendio
Lendio
4 out of 5 stars
4.0
Starting at
4.25% interest
  • pro
    Purchase & refinance loans
  • pro
    Loans from $250,000
Best smaller loans
Bank of America
Bank of America
2.6 out of 5 stars
2.6
Starting at
3% interest
  • pro
    Purchase & refinance loans
  • pro
    Loans from $25,000
Best for SBA loans
SmartBiz
SmartBiz
2.5 out of 5 stars
2.5
Starting at
4.75% interest
  • pro
    SBA real estate loans
  • pro
    Loans from $500,000
Best hard money loan
Flip Funding
Flip Funding
2.5 out of 5 stars
2.5
Starting at
4.25% interest
  • pro
    Various hard money loans
  • pro
    Loans from $75,000
Best for owner-occupied
PNC
PNC
2.5 out of 5 stars
2.5
No rates listed
  • pro
    Purchase & refinance loans
  • pro
    Loans from $100,001

Data as of 1/27/22. Offers and availability may vary by location and are subject to change.

We are committed to sharing unbiased reviews. Some of the links on our site are from our partners who compensate us. Read our editorial guidelines and advertising disclosure.

Many business loans are pretty versatile. Your standard term loan or line of credit can pay for a new coffee machine, fund a marketing campaign, or cover the bills when you have cash flow issues.

But if you’ve got your eyes on real estate for your business—be it office buildings you can lease out, a warehouse for your inventory, or a remodel to your current medical office—any old business loan won’t do. You need a commercial real estate loan.

So let’s find the right real estate loan for your business. We’ll tell you about the best commercial real estate loans out there, including what types exist and who has them―from lenders with the best commercial real estate loan options, lowest interest rate, and most reasonable borrower requirements.

Ready to get that real estate?


Our top-rated lender: Lendio

Lendio partners with over 75 lenders, which improves your odds and efficiency to get the funding you need.

Qualifications:

Money Approach

$50k in revenue

Calendar Approach

6 mos. in business

Analysis Approach

560 credit score


Compare the best commercial real estate loans

Company
Loan min./max.
Lowest listed rate
Min. annual revenue
Min. time in business
Get a loan

$250,000/$5 million

4.25%

UnlistedUnlisted

$25,000 and up

3%

$250,000

2 yrs.

$500,000/$5 million

4.75%

$100,000

2 yrs.

$75,000/$10 million4.25%UnlistedUnlisted

$100,001/$3 million

Unlisted

N/A

3 yrs.

Data as of 1/27/22. Offers and availability may vary by location and are subject to change.

Info
Application requirements
Some lenders don’t list specific application requirements, like annual revenue, but that doesn’t mean they don’t care. If a lender wants your business to be at least three years old, you can guess that it also expects you to make a healthy amount of revenue.

Types of commercial real estate loans

Now you know the best commercial real estate lenders. But what if you’re not sure what type of commercial real estate loans you should get? Here’s a quick primer.

Purchase loans

Purchase loans let you purchase property for your business. If you hear someone talking about a commercial mortgage loan, this is usually what they mean.

Construction loans

Construction loans are cCommercial loans that fund the cost of building. These loans usually have relatively brief terms of 18 to 36 months, with the understanding that you’ll enter a commercial mortgage after completion.

Refinance loans

 If you already have a commercial mortgage but you don’t like your interest rates, you can use a refinance loan to get lower rates and lower monthly payments (and free up cash flow).

Hard money loans

Hard money loans are short-term loans (think 6 to 24 months) with high interest rates. That makes them perfect for flipping properties, where you intend to offload your real estate quickly.

Bridge loans

A bridge loan is like a hard money loan, but the rates are slightly lower, and the terms are slightly longer (three years). As the name implies, bridge loans are great for bridging the time between buying land (or an existing property) and beginning construction (or remodeling), when you can refinance for a better deal through a construction loan. refinance for a better deal through a construction loan.

Equity loans and lines of credit

If you already have equity in a building (yay for you!), then you might qualify for an equity loan or equity line of credit. Your property secures these types of loans (in other words, it serves as collateral), which you can then use for any working capital or purchasing needs you have.

SBA loans

An SBA loan is a type of long-term financing backed by the U.S. Small Business Administration, or SBA. These loans have low interest rates and high maximum loan amounts, though you’ll have to meet some specific criteria to get them. Two types of SBA loans, SBA 7(a) and CDC/SBA 504 loans, can be used for real estate.

Best Small-Business Loans
Lendio
Best overall
4 out of 5 stars
4.0
Fundera by NerdWallet
Best for SBA microloans
3.9 out of 5 stars
3.9
Funding Circle
Best for established businesses
3.8 out of 5 stars
3.8
BlueVine
Best for fast funding
3.7 out of 5 stars
3.7
Fundbox
Best for young businesses
3.6 out of 5 stars
3.6
Learn more about our top brands.

Lendio: Best overall for commercial real estate loans

Lendio
Lendio
Lendio
  • con
    Rates from 4.25% interest
  • pro
    Lending marketplace
  • pro
    Purchase, remodel, and refinance loans

Data as of 1/27/22. Offers and availability may vary by location and are subject to change.

We strongly recommend making Lendio the first stop on your commercial real estate loan journey. That’s because Lendio is what’s called a lending marketplace. All you have to do is submit a single application to Lendio, and it will shop around and find the best-matching loans for you and your business. This process works for many kinds of loans and lines of credit—including commercial real estate loans.

In fact, Lendio might even match you with one of the lenders on this list. You’ll get the same great rates as if you applied directly to the lender, but you also get the added convenience of getting to compare offers from various lenders. Lendio makes loan shopping faster and more convenient. So when you’re ready to apply for a commercial real estate loan, go to Lendio first.

Strengths
pro Fast application
pro Wide variety of financing and lenders
pro Personalized guidance and expertise
Weaknesses
con High interest rates on some loans
con Reports of hard credit inquiries

Bank of America: Best for smaller commercial loans

Bank of America
Bank of America
Bank of America
  • Rates from 3% interest
  • pro
    Direct lender
  • pro
    Purchase, remodel, and refinance loans

Data as of 1/27/22. Offers and availability may vary by location and are subject to change.

You may have noticed that commercial real estate loans are big. Like, really big sometimes. The maximum amounts often stretch into the millions, and the minimums are often much higher than the minimums on other types of loans. But what if you don’t want a giant loan? Bigger isn’t always better, especially when it comes to paying back a loan—plus interest. Thankfully, Bank of America has you covered.

Bank of America offers smaller real estate loans, with amounts as low as $25,000— perfect for buying a small plot of land to put a drive-thru food shack on or for making moderate upgrades to your office space. You can still get the favorable rates and terms that real estate loans are known for, but without the giant loan sizes. Now, qualifying for Bank of America business loans is no easy thing, and its real estate loans have even higher application requirements than its other loans. But if you can qualify and you want a smaller loan amount, Bank of America is a great choice.

Strengths
pro Small loan amounts available
pro Long repayment terms
pro Limited-time low interest rates
Weaknesses
con Strict borrower qualifications
con High applicant rejection rates

SmartBiz: Best for SBA real estate loans

SmartBiz
SmartBiz
SmartBiz
  • Rates from 4.75% interest
  • pro
    SBA lending marketplace
  • pro
    Purchase and refinance loans

Data as of 1/27/22. Offers and availability may vary by location and are subject to change.

Have you considered SBA real estate loans? Thanks to the U.S. Small Business Administration (SBA), you can get government-backed loans that come with low rates and long terms. Note that you get these loans through normal lenders—the government simply guarantees part of the loan—which means you’ll need to shop around to find a lender that fits your needs and will accept you. Or you could just apply with SmartBiz.

Much like how Lendio is a lending marketplace for business loans, SmartBiz is a lending marketplace specifically for the SBA loan program. (SmartBiz is for SBA 7(a) loans only, so you won’t be able to get CDC/SBA 504 loans.) Just fill out SmartBiz’s application, and it will try to match you with a variety of SBA lenders.

Put simply, don’t waste your time applying for SBA loans the traditional way―SmartBiz offers a more convenient and faster alternative.

Strengths
pro Fast application
pro Wide variety of financing and lenders
pro Personalized guidance and expertise
Weaknesses
con High interest rates on some loans
con Reports of hard credit inquiries

Flip Funding: Best for hard money loans

Flip Funding
Flip Funding
Flip Funding
  • Rates from 4.25% interest
  • pro
    Direct lender
  • pro
    Bridge, construction, flip, rental loans, & more

Data as of 1/27/22. Offers and availability may vary by location and are subject to change.

Many lenders can help you buy real estate, but they’ll usually expect your property to be in good condition. So what if you want to buy property to fix and flip? Then you want a commercial hard money loan, like the ones Flip Funding offers. Hard money loans offer short-term funding for your rehab projects. When you’re done with your rehab, you can either refinance the loan or sell the property to pay it off.

Flip Funding offers a nice variety of hard money financing. For example, you can get a line of credit designed for repeat rehabbers, a rehab-only loan to finance repairs on a property you own, and a fix and flip loan for buying and flipping. And Flip Funding can help you close quickly, so you never have to lose out on a great deal.

Just remember that, as with any hard money lender, you should have a plan for refinancing or paying off your Flip Funding loan by the end of the (short) loan term.

Strengths
pro Several types of hard money financing
pro No prepayment penalty on most loans
pro Closing in as little as 7 days
Weaknesses
con High starting rates
con Short repayment terms

PNC: Best for owner-occupied commercial loans

PNC Bank
PNC
PNC Bank
  • Rates unlisted
  • pro
    Direct lender
  • pro
    Purchase and refinance loans

Data as of 1/27/22. Offers and availability may vary by location and are subject to change.

While some lenders are happy to fund your purchase of an investment property, PNC isn’t one of them. PNC offers commercial financing for only owner-occupied real estate. So if you’re planning on buying a new space for your photography studio, or you need a new law office and wouldn’t mind renting out some other units in the building, PNC might be perfect for you.

You’ll find both purchase loans and refinancing options at PNC, so you can buy a new place or refinance that construction loan. Just keep in mind that PNC loans aren’t as widely available as loans from other commercial lenders—PNC operates in only 21 states. But if you happen to be in one of them, PNC often has deals on real estate loans (like 0.5% off its current rate), making it a great lender for owner-occupied real estate.

Strengths
pro Choice of interest rate types
pro Several repayment term options
pro Discount offers available
Weaknesses
con Loans for owner-occupied real estate only
con Availability in just 21 states
Money
Real estate loan rates

Want to know what kind of rates to expect on your commercial mortgage? Check out our guide to commercial loan rates.

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Honorable mentions

The companies above are the best and brightest in commercial lending. But the lenders below are worth a look too.

Compare honorable mention commercial real estate loans

Company
Loan min./max.
Lowest listed rate
Min. annual revenue
Min. time in business
Get a loan

$50,000/$1 million

Unlisted

UnlistedUnlisted

Up to $10 million

Unlisted

Unlisted

Unlisted

$25,000 and up

Unlisted

Unlisted

Unlisted

$50,000 and upUnlistedUnlistedUnlisted

Data as of 1/27/22. Offers and availability may vary by location and are subject to change.

Wells Fargo: Honorable mention

Wells Fargo
Wells Fargo
Wells Fargo
  • Rates unlisted
  • pro
    Direct lender
  • pro
    Purchase and refinance loans

Data as of 1/27/22. Offers and availability may vary by location and are subject to change.

Wells Fargo offers loans for purchasing and refinancing real estate, but its real standouts are equity loans. As you may know, equity loans let you use the equity you’ve built in real estate as collateral for a loan, which you can then use to fund all sorts of projects for your business. And Wells Fargo has not one but two real estate equity financing options: an equity loan and an equity line of credit.

U.S. Bank: Honorable mention

U.S. Bank
US Bank
U.S. Bank
  • Rates unlisted
  • pro
    Direct lender
  • pro
    Purchase, investment, and refinance loans

Data as of 1/27/22. Offers and availability may vary by location and are subject to change.

U.S. Bank has term loans for both owner-occupied properties and investment properties, making it a good lender for both acquiring an office and opening an apartment complex. Terms on these loans vary from 5 to 25 years. 

Santander Bank: Honorable mention

Santander Bank
Santander
Santander Bank
  • Rates unlisted
  • pro
    Direct lender
  • pro
    Purchase, remodel, and refinance loans

Data as of 1/27/22. Offers and availability may vary by location and are subject to change.

Santander Bank offers two types of real estate loans: purchase loans (for buying new property) and refinance/cash out loans (for refinancing existing real estate loans or making improvements). Its real estate loans are for owner-occupied properties only, and they have terms up to 25 years (with up to 10 years of fixed interest).

Chase Bank: Honorable mention

Chase
JP Morgan Chase Bank Business
Chase Bank
  • Rates unlisted
  • pro
    Direct lender
  • pro
    Purchase, construction, and refinance loans

Data as of 1/27/22. Offers and availability may vary by location and are subject to change.

With Chase’s commercial real estate loans, you can construct, purchase, or refinance your real estate project. Like some other commercial lenders on this list, Chase’s loans are just for owner-occupied real estate (so it’s not the best bet for real estate investors). Its real estate loans start as low as $50,000, and Chase offers both fixed rate and variable rate interest options.

The takeaway

For most business owners who need a commercial real estate loan, we recommend Lendio. It has a great spread of loan types and lenders, and it lets you compare loan options, rates, and more.

But if you’re not into Lendio, we’ve got other great picks. Bank of America works especially well for businesses that want smaller commercial real estate loans, while SmartBiz works better for businesses that want SBA real estate loans. If you’d prefer a hard money loan, Flip Funding has you covered. And as long as you’re looking at a loan for owner-occupied real estate, PNC can be a good lender too.

Before you borrow, figure out the cost of your real estate loan with our commercial loan calculator.

Related reading

Commercial real estate loan FAQ

Do I have to use a commercial real estate loan to buy a commercial property?

You don’t necessarily have to use real estate loans to buy property, but they’re probably your best bet. Commercial real estate loans come in much larger amounts than some other types of loans, and they offer payment structures that make sense for real estate projects. (For example, you can make interest-only payments during construction, then refinance your loan after the building is done.)

Plus, many lenders have restrictions on what their non–real estate loans can be used for, so in some cases, you’d get in trouble for buying an investment property with that line of credit.

If in doubt, ask your lender if your financing can go toward commercial property.

What kind of down payment do I have to make on a commercial mortgage?

The down payment on your commercial mortgage will depend on your specific lender and loan, but somewhere between 15% and 35% is typical for a commercial mortgage.

What fees and costs do commercial real estate loans have?

Real estate loans come with a lot of fees, unfortunately. Most commercial real estate loans have origination fees and appraisal fees at a minimum. You may also encounter loan application fees, survey fees, and other legal fees.

And watch out—some commercial loans have prepayment fees too.

What do I need to qualify for a commercial real estate loan?

Commercial lenders evaluate a prospective real estate borrower just like they would for any other loan: they’ll look at things like your personal credit score, your business’s credit score, your annual revenue, how long you’ve been around, and other stuff like that.

But it’s not just you and your business that has to qualify for the loan—the property does too. Most lenders will insist on getting an appraisal done to see if the purchase price is appropriate, and they may ask for inspections or surveys too. They may also consider the property’s location when deciding whether or not to lend.

(Maybe you can see why real estate loans usually take longer to fund than other small-business loans do.)

Methodology

To find the best commercial real estate loans, we researched more than 50 lenders. We then scored and ranked lenders based on things like their commercial loan rates, borrower requirements, customer reviews, and other relevant factors.

Disclaimer

At Business.org, our research is meant to offer general product and service recommendations. We don't guarantee that our suggestions will work best for each individual or business, so consider your unique needs when choosing products and services.

Chloe Goodshore
Written by
Chloe Goodshore
Chloe covers business financing and loans for Business.org. She has worked with many small businesses over the past 10 years, from video game stores to law firms. Those years watching frustrated business owners try to sift through their many options gave her a passion for breaking down complex business topics. She wants to help business owners spend less time agonizing over their businesses so they can spend more time running them.
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