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Commercial Property Loans in San Diego
- Commercial Property Loans in San Diego, California
- Economy in Review
- Multifamily Market
- Office Market
- Industrial Market
- Retail Market
- Self-Storage Market
- Hospitality Market
- Commercial Real Estate Loans by Purpose
- Permanent Financing
- Refinancing a Commercial Real Estate Property in San Diego
- Construction Financing
- Bridge Loans
- Commercial Real Estate Loans by Type
- Bank Loans
- Life Company Loans
- Agency Loans
- HUD Loans
- CMBS Loans
- SBA Loans
- Mezzanine Loans
- Commercial Property Insurance in San Diego
- Get Financing
Commercial Property Loans in San Diego, California
Economy in Review
San Diego's economy is diverse and robust, with major industries including biotechnology, defense, tourism, and manufacturing. The city has a highly educated workforce and a strong entrepreneurial spirit. According to the Bureau of Labor Statistics, the unemployment rate in San Diego is below the national average. The city's economy is expected to continue growing in the coming years.Multifamily Market
San Diego's multifamily market is strong, with high demand for rental units. The city's population is growing, and many residents are choosing to rent rather than buy. According to the U.S. Census Bureau, the median rent in San Diego is higher than the national average. However, vacancy rates remain low, indicating a healthy market.Office Market
San Diego's office market is also strong, with high demand for space from a variety of industries. The city has a large number of technology and biotech companies, which require specialized office space. According to commercial real estate firm JLL, San Diego's office market has seen steady growth in recent years.Industrial Market
San Diego's industrial market is thriving, with high demand for warehouse and distribution space. The city's proximity to major ports and transportation hubs makes it an ideal location for logistics companies. According to JLL, San Diego's industrial market has seen strong growth in recent years.Retail Market
San Diego's retail market is diverse, with a mix of large shopping centers and small boutique stores. The city has a strong tourism industry, which drives demand for retail space in popular areas such as downtown and the beach communities. According to JLL, San Diego's retail market has remained stable in recent years.Self-Storage Market
San Diego's self-storage market is strong, with high demand for storage units from both residential and commercial customers. The city's population growth and high cost of living have led many residents to downsize their living spaces, creating a need for storage solutions. According to commercial real estate firm CBRE, San Diego's self-storage market has seen steady growth in recent years.Hospitality Market
San Diego's hospitality market is thriving, with high demand for hotel rooms from both tourists and business travelers. The city has a large number of attractions, including beaches, museums, and theme parks, which draw visitors year-round. According to CBRE, San Diego's hospitality market has seen strong growth in recent years. In conclusion, San Diego's commercial property market is diverse and strong, with high demand for space in all sectors. The city's growing population and strong economy make it an attractive location for investors and developers. If you're considering a commercial property loan in San Diego, it's important to work with a lender who understands the local market and can provide customized financing solutions.Commercial Real Estate Loans by Purpose
There are many types of loans available for commercial properties in San Diego, and the best fit for you depends on your investment strategy. Here are some broad categories of financing available.
Permanent Financing
Permanent financing is a type of loan that remains in place for an extended period of time. It's commonly used to finance the acquisition of commercial properties or to refinance existing debt. Types of permanent financing include bank loans, loans from government-sponsored entities like Fannie Mae and Freddie Mac, HUD loans, credit union loans, loans from life insurance companies, commercial mortgage backed securities (CMBS) loans, and other types of loans depending on the specifics of the commercial property.
Refinancing a Commercial Real Estate Property in San Diego
I wouldn't quite call this a separate type of loan, but I have to mention refinancing in here. These are typically permanent loans (but not always) used to pay down an existing, partially amortizing or interest-only loan.
Often you may be able to time a refinance to happen after an interest rate drop — an ideal solution — but if your loan is maturing during a period of higher rates, you shouldn't stress too much about this. We'll work with you to find the best loan terms for your commercial property by reaching out to potentially thousands of lenders. Just complete the form below, and we'll get to it.
Construction Financing
Construction financing, also known as interim financing, is used to finance the cost of construction for commercial properties. It is usually a short-term loan that covers the cost of land development and building construction. Once construction is completed, the borrower can typically convert this into a permanent loan or pay it off with a new loan.
Bridge Loans
Bridge loans are a type of short-term loan that can be used to cover costs in the interim period between the end of one loan and the beginning of another. They are typically used in commercial real estate to finance the transition between construction financing and permanent financing. Bridge loans generally have higher costs than most other financing options and are often interest-only and non-recourse.
Commercial Real Estate Loans by Type
Depending on the purpose of your loan, you will have several financing options available to meet your investment goals. Read below to learn more about specific loan types.
Bank Loans
Bank loans are a common financing option for commercial real estate in San Diego. They can offer competitive interest rates and flexible terms, but the specifics can vary greatly from bank to bank. While they may not always be the best fit for larger, more complex projects, they can be an excellent option for smaller, simpler properties.
Life Company Loans
Life company loans are typically used to finance high-quality assets in major markets. They generally have lower loan-to-value ratios than most other loan types but offer competitive interest rates and long terms. However, they may not be suitable for riskier projects or properties in less established markets.
Agency Loans
Agency loans, offered by government-sponsored entities like Fannie Mae and Freddie Mac, are typically used for properties that are mostly multifamily. They offer attractive loan terms, low, fixed interest rates, and are non-recourse. However, there are restrictions on the amount of income that can come from other commercial uses.
HUD Loans
HUD multifamily loans are government-backed loans that are primarily used for the construction, substantial rehabilitation, purchase, and refinancing of multifamily properties. These loans offer long-term, non-recourse financing with competitive interest rates but have extensive requirements for qualification.
CMBS Loans
Commercial Mortgage Backed Securities (CMBS) loans are a type of mortgage-backed security backed by commercial real estate loans. Lenders focus more on the strength of the property than the borrower's credit, making them a good option for properties with strong cash flow.
SBA Loans
Small Business Administration (SBA) loans, such as the SBA 7(a) and SBA 504, offer attractive financing options for small businesses. However, the maximum amount for an SBA 7(a) loan is $5 million, while SBA 504 loans can go up to $20 million. They cannot be used for multifamily properties and are only available for properties that the business owner occupies.
Mezzanine Loans
Mezzanine financing is a hybrid form of financing that combines elements of debt financing and equity investment. It is typically used in commercial real estate to fill a funding gap between the primary loan and the total cost of a project.
Commercial Property Insurance in San Diego
This part isn't about loans, but it's just as important to your investment's success. Let's talk (quickly) about insurance.
Insurance premiums have skyrocketed in the past few years, as I'm sure you know. While multifamily gets a lot of the attention, rates for insuring anything from office buildings to shopping centers have jumped significantly.
Janover Insurance Group is dedicated to finding the best insurance solutions for your commercial real estate assets in San Diego. Click to get a free insurance quote for your property — no obligation.
- Commercial Property Loans in San Diego, California
- Economy in Review
- Multifamily Market
- Office Market
- Industrial Market
- Retail Market
- Self-Storage Market
- Hospitality Market
- Commercial Real Estate Loans by Purpose
- Permanent Financing
- Refinancing a Commercial Real Estate Property in San Diego
- Construction Financing
- Bridge Loans
- Commercial Real Estate Loans by Type
- Bank Loans
- Life Company Loans
- Agency Loans
- HUD Loans
- CMBS Loans
- SBA Loans
- Mezzanine Loans
- Commercial Property Insurance in San Diego
- Get Financing