Walk into any bank and ask about financing your building, and you’ll notice one thing: every lender has their own number. 

One says 7.9%, another 8.3%. 

It may feel confusing, but commercial real estate loan rates follow a few common benchmarks. 

Once you know them, it’s much easier to see whether you’re getting a fair deal.

Where Rates are Sitting Right Now

You don’t need to be an economist to track what lenders are watching.

  • Prime Rate is 7.50% as of August 2025. It moves when the Fed hikes or cuts rates, and some banks peg their commercial loans directly to it.

  • 10-Year Treasury Yield is around the mid-4% range. Fixed commercial loans often build on top of this.

  • SOFR (Secured Overnight Financing Rate) sits near 4.3%. Most floating-rate loans track this.

These are the base rates. Then the lender adds their own extra cost, called the spread, based on your property, loan size, tenants, and finances.

What “Competitive” Looks Like for Small Owners

How this works in real life:

Buying Your Own Building 

A bakery in Dallas gets two loan offers. 

  • Bank A says: 7.95% fixed for 10 years.
  • Bank B says: Treasury + 2.75% (about 7.85% today).

Bank B is slightly cheaper and easier to get out of if rates drop later.

Investment Property

You own a warehouse with two tenants.

  • Lender 1: Treasury + 2.40% fixed.
  • Lender 2: SOFR + 3.00% floating.

If you plan to refinance in three years, the floating loan could save money even if today’s rate is a little higher.

Owner Using SBA loan

With an SBA 7(a) loan, the rate has a built-in ceiling: Prime + 3%.

With Prime at 7.50%, the maximum rate you’d face is 10.5%.

That cap gives you bargaining power when talking to lenders.

Why Two Similar Deals Can Get Two Very Different Rates

This is where many small owners get frustrated. 

You show two banks the same building and walk out with very different quotes. Why? 

Because the spread is the wild card.

  • Leverage: Most banks like to see 65-70% loan-to-value. Push higher, and they pad the spread.

  • Cash flow cushion (DSCR): If your rent barely covers debt payments, expect a higher rate. Lenders like to see at least 1.25x coverage.

  • Property type: A medical office with long leases? Safer in the bank’s eyes. A hotel with seasonal swings? Pricier money.

  • Your financials: Clean tax returns and organized books can shave valuable basis points off your rate.

Five Small Moves That Often Lower Your Rate

You can’t control the index, but you can control the strength of your loan file.

Target a Safer LTV

Quotes often sharpen when leverage drops into the 60 to 65 percent band. 

Regulators push banks to price risk and watch concentrations. 

The OCC’s handbook explains why stronger coverage and lower leverage earn better treatment.

Show a Clean DSCR File

Line up the trailing twelve months’ income and expenses. Explain any blips. If your DSCR is thin, consider a slightly longer amortization or a small equity bump to reduce payment pressure. The OCC material above describes why a cash flow cushion matters. 

Stabilize What You Can Before the Appraisal

Month-to-month tenants can spook underwriting.

Simple renewals and estoppels signal stability and can shrink the spread.

Organize the Basics

Rent roll, trailing twelve months P and L, year-to-date financials, tax returns, personal financial statement, schedule of real estate owned, capex plan with bids. 

A tight package moves faster and looks lower risk.

Ask for a Structure Swap if the Rate Won’t Budge

If the lender will not cut the rate, push for something else. 

A few interest-only months while you finish light capex. 

Or a friendlier prepayment schedule

Either one can matter more than 10 to 20 basis points.

Timeline and What to Expect 

Timelines vary by product and by how complete your file is.

  • Bank balance-sheet loans: Often, a few weeks for underwriting and third-party reports once the package is complete.

  • SBA: Add time for the SBA portion and required forms. The program pages outline what is needed and why files can take longer for government review.

  • Bridge loans: These underwrite faster when your business plan is clear and your exit strategy is mapped.

The regulator handbook explains the depth of review banks apply.

That background helps you see why clean, verifiable numbers speed things up.

Need Help? Get in Touch with ROK Financial. 

Commercial real estate loan rates move with the market, but the way you prepare and shop for them makes just as much difference as the index of the day. 

Breaking every quote into index plus spread, checking prepayment terms, and weighing your exit plan against the structure gives you a much clearer picture of what’s really competitive.

That’s what saves owners from signing a “great rate” that later proves costly, or from overlooking an option that would have fit their business better.

We understand that not every owner has the time to track Treasury yields, dig through SBA program details, or decode prepayment math.

A financing partner like ROK Financial spends every day matching small and mid-sized businesses with the right lenders, translating the fine print into plain terms, and negotiating rates and terms that fit real-world plans.

Explore your options today. 

FAQ

Here are some FAQs about commercial real estate loan rates and what’s competitive in today’s market.

How often do commercial real estate loan rates change?

Rates can shift weekly, or even daily, because they move with indexes like Treasury yields, SOFR, or Prime.

Is a fixed or floating rate better for small business owners?

Fixed rates give certainty. Floating can save money if you plan to refinance soon or think rates will drop.

Can small business owners negotiate the spread a lender adds?

Yes. A cleaner file, lower leverage, and stable tenants often give you room to push the spread down.