I’m Michael DiVita — DRE #01372066 | NMLS #241655, DiVita Home Finance (DRE #01818285 | NMLS #323700), Tiburon, CA. I’ve been in California mortgage lending since 2000 and founded DiVita Home Finance in 2007. Call (800) 239-1103.
Commercial real estate loan rates in California vary significantly by asset class, LTV, and borrower strength. Here’s what to expect across the major property types in 2026. See also: Commercial Loans CA | Multifamily Loans CA.
Current CRE Rates by Asset Class
| Asset Type | Rate Range | Max LTV | DSCR Min |
|---|---|---|---|
| Multifamily (5+) | 6.99%–9.49% | 80% | 1.20x |
| Mixed-Use | 7.49%–10.49% | 75% | 1.25x |
| Retail / Strip Center | 7.99%–10.99% | 70% | 1.30x |
| Office | 8.49%–11.49% | 70% | 1.30x |
| Industrial / Warehouse | 7.49%–9.99% | 75% | 1.20x |
| Bridge / Hard Money | 9.49%–12.99% | 70% | N/A |
Why Office Rates Are Higher in 2026
Post-pandemic remote work trends have created sustained uncertainty around office occupancy, particularly in suburban California markets. Lenders have repriced office risk upward — adding 50–150 basis points above multifamily — and tightened LTV to 65–70%. Medical office and creative office conversions are treated more favorably than traditional corporate office. If you’re financing an office property in 2026, the story you tell about tenancy and occupancy trends matters as much as the cap rate.
What Drives Your Specific Rate
LTV and DSCR are the top two drivers. A deal at 65% LTV with 1.35x DSCR gets meaningfully better pricing than a 75% LTV deal at 1.20x DSCR. Lease structure also matters significantly — 10-year NNN leases with credit tenants compress rates vs. month-to-month or short-term leases. Borrower experience counts too: a first-time commercial buyer pays more than an operator with a demonstrated track record of managing and stabilizing commercial assets. I shop across 40+ wholesale lenders and can identify the best rate/structure combination for your specific deal.
Bridge vs. Permanent Financing
For stabilized properties with strong occupancy and documented NOI, permanent financing at the rates in the table above is the right structure. For value-add or transitional properties — below-market occupancy, near-term lease rollovers, or properties requiring renovation — bridge financing at 9.49–12.99% buys you the time to stabilize before refinancing permanent. I work both sides: the bridge acquisition and the permanent refinance once the property is performing.
Get a Commercial Rate Quote
Tell me your asset type, loan amount, and LTV — I’ll come back with a same-day rate range and lender options.
Frequently Asked Questions
What are current commercial real estate loan rates in California in 2026?
California CRE rates in 2026 range from 6.99% for stabilized multifamily to 12.99%+ for bridge/hard money deals on transitional properties. Multifamily (5+ units) sits at 6.99–9.49% with up to 80% LTV. Industrial and warehouse range from 7.49–9.99%. Retail and mixed-use price at 7.49–10.99%. Office properties, reflecting post-pandemic vacancy uncertainty, carry the highest permanent financing rates at 8.49–11.49% with tightened LTV at 70%. Bridge financing for value-add or unstabilized assets runs 9.49–12.99% regardless of asset class. Your specific rate depends on LTV, DSCR, lease quality, borrower track record, and lender selection. Call me with your deal specifics and I’ll give you a real rate range, not a generic estimate.
What DSCR do I need to qualify for commercial financing in California?
Most California commercial lenders require a minimum DSCR of 1.20x for multifamily and 1.25–1.30x for retail, mixed-use, and office. DSCR is calculated as net operating income divided by annual debt service. A property with $150,000 NOI and $110,000 in annual debt service has a 1.36x DSCR — well within guidelines for most lenders. Properties with DSCR below the minimum threshold can still be financed through bridge programs that don’t require a DSCR minimum. If your property isn’t yet at stabilized occupancy, bridge financing gets you into the deal while you improve NOI to qualify for permanent financing.
Can I use a bridge loan to buy a commercial property in California that isn’t fully leased?
Yes — bridge loans (9.49–12.99%) are specifically designed for commercial properties that don’t yet qualify for permanent financing due to below-market occupancy, in-place rents below market, or short remaining lease terms. The bridge funds the acquisition at current as-is value; you execute your value-add plan (lease-up, renovation, rent increases); then refinance to permanent financing once the property is stabilized at 90%+ occupancy with documented market rents. This is the standard playbook for California value-add commercial investors. I work both stages — the bridge acquisition and the permanent exit refinance — so you don’t need to find a new lender mid-project.
Talk to Michael Directly
DiVita Home Finance | Tiburon, CA | In lending since 2000, founded DiVita Home Finance in 2007. Michael DiVita DRE #01372066 | NMLS #241655. Company DRE #01818285 | NMLS #323700.
💬 Text: (310) 849-9124
