Commercial mortgage rates are typically priced from a market benchmark plus a lender spread. The borrower's final rate depends on property type, leverage, debt-service coverage, credit, sponsorship, term, amortization, recourse, and prepayment structure.
Quick answer: There's no single commercial mortgage rate. Rates start from a benchmark (like Treasury yields, SOFR, or prime) and a lender adds a spread for risk. The snapshot below shows today's benchmarks; your actual rate is set by your specific deal.
What moves a commercial mortgage rate
Lower leverage, stronger debt-service coverage, stable occupancy, experienced ownership, and clean financial documentation generally improve pricing. A transitional property, high leverage, weak credit, a short operating history, special-use collateral, or a fast-closing requirement generally increase cost.
Rate is not the only cost
Compare lender fees, appraisal and third-party reports, legal costs, reserves, prepayment penalties, amortization, and recourse. A lower note rate can be a worse deal if it comes with expensive defeasance, a short amortization, or restrictive cash management. See our commercial real estate loans and, for stabilized institutional deals, CMBS loans.
How to get a useful quote
Provide the property address, purchase price or value, requested loan amount, rent roll, trailing operating statement, borrower experience, and desired closing date. A complete package produces a far more reliable quote than a general inquiry. If your timeline is tight, see fast commercial financing, and before you pick a lender, read how to choose the best commercial real estate lender.
Frequently asked questions
What is a good commercial mortgage rate?
A good rate is one that's competitive for the specific property, leverage, cash flow, term, and borrower profile — not the lowest number advertised without context.
Are commercial mortgage rates tied to the Federal Reserve?
They're influenced by market benchmarks such as Treasury yields, SOFR, and prime, but each lender adds a risk and profit spread.
Can I lock a commercial mortgage rate?
Many permanent-loan programs allow a rate lock at a defined stage; bridge and other programs may price at closing.
Do rates differ by property type?
Yes. Multifamily, industrial, retail, office, hotel, and special-use properties can price differently based on perceived risk and lender demand.