Commercial Loans Inland Empire
The Inland Empire — Riverside and San Bernardino counties — is one of the most commercially active regions in California. The logistics and warehouse boom along the I-10 and I-15 corridors has made it the industrial real estate capital of Southern California. Office, retail, and industrial properties are all active here, and I work with IE investors and business owners on commercial mortgage financing across all property types: industrial/logistics, office parks, strip retail, mixed-use, and owner-occupied commercial buildings.
I’m Michael DiVita, owner of DiVita Home Finance. Licensed in California since 2007. Commercial lending requires different lender relationships than residential — I work with commercial mortgage lenders, CMBS programs, SBA lenders, and debt funds that specialize in California commercial real estate at various price points.
Commercial Real Estate in the Inland Empire
The IE’s commercial market has several distinct sub-markets. Industrial and logistics space along major freight corridors (Ontario, Fontana, Perris, Moreno Valley) has seen significant cap rate compression as e-commerce demand has driven industrial rents to record levels. Office markets in Riverside downtown and San Bernardino are more affordable than coastal equivalents. Retail follows population density — San Bernardino’s Inland Center corridor, Ontario’s Milliken Avenue commercial strip, and the Temecula/Murrieta retail corridor are all active.
Commercial loan underwriting in the IE follows the same principles as anywhere in California: net operating income (NOI) drives loan sizing, DSCR determines feasibility, and lender comfort with the property type and market determines terms. IE industrial can be particularly competitive to finance right now given strong rent growth and lender demand for this asset class.
IE Commercial Loan Programs
- Conventional Commercial Mortgage — for stabilized properties. 65–75% LTV, DSCR minimum 1.20–1.25x, 5–25 year terms, fixed or variable rate.
- SBA 504 Loans — for owner-occupied commercial properties. 10% down, fixed rate on SBA tranche, 25-year amortization. Excellent for IE business owners buying their space.
- CMBS Loans — for larger assets ($3M+ loan amount). Non-recourse available, fixed rate, interest-only periods possible. Best for stabilized industrial, retail, or office.
- Bridge Loans — for value-add or transitional properties. 12–36 months, interest-only, 65–75% LTV. Used to stabilize before refinancing to permanent debt.
- Hard Money Commercial — for complex or time-sensitive deals. Faster close, higher rates, shorter terms.
Inland Empire Commercial Loan FAQ
What’s a typical cap rate for industrial property in the Inland Empire?
Industrial cap rates in the IE have compressed significantly over the past several years as e-commerce and logistics demand drove rents higher. As of 2026, Class A industrial along major logistics corridors (Ontario, Fontana, Perris) is trading at cap rates in the 4.5–6% range depending on lease terms, building age, and tenant credit quality. Value-add industrial with shorter lease terms or older stock trades at wider caps. From a financing perspective, compressed cap rates mean lower DSCR on acquisition, which sometimes requires larger down payments or interest-only periods to make the deal work. Call me with a specific property and I’ll run the DSCR analysis for you.
Can I get an SBA 504 loan for an industrial or warehouse building in the IE?
Yes — industrial is one of the most common SBA 504 property types in the Inland Empire. The SBA 504 requires that your business occupies at least 51% of the building, which works for owner-operator distributors, manufacturers, logistics companies, and any business that needs warehouse/industrial space. With 10% down, SBA 504 is far more capital-efficient than conventional commercial financing at 25–35% down. The tradeoff is processing time (45–90 days) and more documentation. For a well-established IE business buying its first or second building, the 504 is often the best financial decision available. Call me to start the process.
What loan amounts are typical for IE commercial real estate financing?
IE commercial deals range widely. Small retail strip centers or owner-occupied office buildings might be $1M–$3M loan. Larger industrial assets, shopping centers, or multi-tenant office parks run $5M–$25M+. The right program varies by loan amount: SBA 504 works best up to about $10–15M total project (the SBA debenture maxes at $5.5M for most projects). Above $10M, CMBS or life company lending typically offers the most competitive terms for stabilized assets. Bridge loans work at any size for transitional properties. I work with lenders across the full IE deal size spectrum — call me with your property details.
Talk to Michael Directly
DiVita Home Finance | Marin County, CA | Licensed since 2007. DRE #01818285 | NMLS #323700.
💬 Text: (310) 849-9124
