If you are buying commercial real estate in Florida, your financing options generally fall into five buckets: conventional bank or credit-union mortgages, SBA 504 loans, SBA 7(a) loans, short-term bridge loans, and CMBS (conduit) loans. Conventional loans suit stabilized, income-producing assets. SBA loans are for owner-occupants who plan to operate a business in the space. Bridge loans cover transitional or value-add properties that a bank will not yet underwrite. CMBS loans tend to fit larger, non-recourse acquisitions. The right choice comes down to whether the property is stabilized today, how much equity you can put in, and your exit timeline.

For most stabilized purchases, lenders cap leverage with loan-to-value (LTV) and debt service coverage ratio (DSCR) tests. Commercial LTV commonly runs 65% to 75% of value, meaning a 25% to 35% down payment, and many stabilized loans require a DSCR of at least 1.20x to 1.25x [1]. SBA programs allow far less down (as little as 10% for owner-occupants), which is why they matter so much for Florida business owners buying their own building.

Last updated: June 2026

How commercial financing in Florida is priced

Commercial real estate financing in Florida is priced off a benchmark index plus a lender spread. Most conventional and agency loans are quoted over the 5- or 10-year U.S. Treasury yield or SOFR, while SBA and many bank loans track the prime rate. As of late June 2026, commercial mortgage rates broadly ranged from roughly 5% to nearly 13% depending on product, with quoted starting rates near 5.62% for large multifamily, about 6.39% for CMBS, and about 5.95% for SBA 504 financing [2].

Rates moved up from the 2026 low earlier in the year as inflation pressure returned, and lenders are underwriting conservatively [2]. In practice that means two things for a Florida buyer: your DSCR cushion matters more than a headline rate, and your insurance line item is now a core underwriting question rather than a footnote.

Conventional commercial mortgages

Conventional loans from regional banks and credit unions are the workhorse of the Florida market and fit stabilized assets with established rent rolls and creditworthy tenants.

Loan-to-value: generally 65% to 75% [1].
Terms: commonly 5-, 7-, or 10-year fixed periods amortized over 20 to 25 years.
Well suited to: leased retail centers, office buildings, and multifamily with a track record.

Because these loans are balance-sheet products, the lender's view of the borrower (liquidity, experience, and guarantees) carries real weight alongside the property's numbers.

SBA 504 and 7(a) loans for owner-occupants

If you operate a business and plan to occupy the space (SBA rules generally require owner-occupancy of at least 51% of an existing building), SBA programs are often the lowest-down-payment path.

SBA 504

The 504 program pairs a third-party lender (50% or more of the project), a Certified Development Company debenture guaranteed by the SBA (up to 40%), and a borrower contribution of at least 10%. The standard SBA debenture maxes at $5 million, rising to $5.5 million for small manufacturers and certain energy-efficiency projects. Down payment increases to 15% for start-ups or special-purpose properties and 20% when a project is both [3].

SBA 7(a)

The 7(a) program has a maximum loan amount of $5 million. When a 7(a) loan finances real estate, the term can run up to 25 years. The SBA guarantees up to 85% of loans of $150,000 or less and up to 75% of larger loans [4]. As of a May 2026 SBA rule effective for loans numbered on or after July 4, 2026, eligible borrowers can combine 7(a) and 504 borrowing for up to $10 million in total SBA-backed financing [5].

The trade-off with SBA loans is documentation and timeline in exchange for low down payment and long, often fixed-rate terms that preserve operating liquidity.

Bridge loans for transitional assets

If you are buying a property that needs lease-up, renovation, or repositioning, a bank may decline it until it stabilizes. Bridge loans fill that gap. They are short-term (commonly 6 to 24 months), frequently interest-only, and underwritten on as-is value rather than a stabilized DSCR [6].

That speed and flexibility cost more. Bridge rates in the current market have run roughly 8% to 14.5%, typically floating over one-month SOFR with spreads in the mid-single digits, and most bridge lenders cap leverage around 65% to 75% of as-is value [6]. The plan with any bridge loan is to refinance into permanent financing or sell once the property is stabilized and cash-flowing.

CMBS (conduit) loans

Commercial Mortgage-Backed Securities loans are pooled and sold as bonds, which makes them a common tool for larger acquisitions. Their main appeal is that they are typically non-recourse, so the lender's collateral is the property rather than your personal assets. The trade-offs are rigid prepayment structures (often defeasance or yield maintenance) and less flexibility to renegotiate terms mid-loan.

What Florida lenders scrutinize

Beyond the loan type, underwriters focus on a short list of metrics, and in Florida the insurance question sits near the top.

DSCR: many stabilized loans look for 1.20x to 1.25x at a minimum, with 1.30x or higher unlocking better pricing [1].
LTV: 65% to 75% is typical for strong assets, with the upper end more achievable for well-leased multifamily or industrial [1].
Insurability: property, wind, and flood coverage materially affect a Florida pro-forma, so model these costs carefully before you sign a term sheet.

These same factors shape financeability across submarkets. Whether you are underwriting a building near Brickell or Coral Gables, the property's cash flow, leverage, and insurance profile drive the lender's answer more than the address does.

Frequently asked questions

How much do I need to put down on a commercial property in Florida?

Conventional commercial loans generally require 25% to 35% down because LTV typically caps at 65% to 75% [1]. SBA 504 financing for owner-occupants can require as little as 10%, rising to 15% or 20% for start-ups or special-purpose properties [3].

What DSCR do commercial lenders require?

Many stabilized commercial loans require a minimum DSCR around 1.20x to 1.25x, with 1.30x or higher generally needed for lower rates and higher leverage [1]. Bridge loans are often underwritten interest-only without a stabilized DSCR test at closing [6].

What is the difference between a bridge loan and permanent financing?

Bridge loans are short-term (commonly 6 to 24 months), often interest-only, and built for transitional or value-add properties. Permanent loans assume stabilized income and longer holds and offer lower, more predictable rates [6]. Many investors use a bridge loan to acquire and stabilize, then refinance into permanent financing.

Can I use an SBA loan to buy commercial real estate?

Yes, if you occupy the space. SBA 504 and 7(a) loans are designed for owner-occupants and generally require occupancy of at least 51% of an existing building. The 7(a) maximum is $5 million, and a 2026 SBA rule allows eligible borrowers to combine 7(a) and 504 borrowing up to $10 million for loans numbered on or after July 4, 2026 [4][5].

If you are weighing a commercial acquisition or want to pull equity from an asset you already own, a buyer consultation or a current listing valuation is a sensible first step to understand your leverage before you approach a lender.

Gabriel

Sources

Gabriel A. Moyers, PA. eXp Realty. Florida License #3407280. Equal Housing Opportunity. This article is general information as of June 2026 and is not legal, tax, or financial advice. Verify current figures against authoritative sources before acting.

Florida commercial real estate financing: a practical guide for investors