Commercial mortgage rates in Florida currently range from 5.30% to 12.75% depending on loan type, property class, leverage, and risk profile. The 10-year Treasury, sitting at approximately 4.26% in April 2026, is the primary benchmark for fixed-rate permanent loans. Here's the complete breakdown of where rates stand today — and what actually drives your pricing.
(April 2026)
(Agency / Life Co.)
in 2026
Rate environment context matters: the Mortgage Bankers Association projects over $1 trillion in commercial real estate loans will mature in 2026, forcing a large volume of borrowers to refinance in the current rate environment. That pressure, combined with a Fed that has signaled caution on further cuts, means rates are likely to stay relatively range-bound through the balance of the year. Understanding where rates are today — and why — is the starting point for structuring any new deal or refinance.
Florida Commercial Mortgage Rates by Loan Type
There is no single "commercial mortgage rate." Rates vary dramatically by lender type, loan structure, and property risk profile. The table below reflects current market conditions in Florida as of April 2026:
| Loan Type | Rate Range | Term | Recourse? | Best For |
|---|---|---|---|---|
| HUD / FHA (Multifamily) | 5.00% – 5.50% | 35 yr fixed | Non-recourse | Stabilized multifamily, senior housing |
| Life Insurance Company | 5.30% – 6.25% | 5–30 yr fixed | Non-recourse | Core assets, long hold strategies |
| Agency (Fannie / Freddie) | 5.30% – 6.50% | 5–30 yr fixed | Non-recourse | Multifamily 5+ units |
| CMBS / Conduit | 5.75% – 7.00% | 5 or 10 yr fixed | Non-recourse | Retail, office, hospitality, mixed-use |
| Bank / Portfolio | 5.75% – 7.50% | 3–10 yr fixed or floating | Usually recourse | Owner-occupied, relationship borrowers |
| Debt Fund / Bridge | 8.00% – 11.00% | 12–36 months | Varies | Value-add, transitional properties |
| Hard Money / Construction | 9.00% – 12.75% | 12–24 months | Usually recourse | Ground-up construction, distressed assets |
What Actually Drives Your Commercial Mortgage Rate
Most borrowers focus on the index (Treasury or SOFR) when thinking about rates. The index is only part of the story. Your spread over that index — and how lenders decide on it — is where the real action is.
Leverage (LTV)
Loan-to-value is the single biggest driver of your spread. A deal at 50% LTV may price 75–150 basis points tighter than the same deal at 75% LTV. Every dollar of additional equity you put in reduces lender risk and improves your rate. If you're on the margin between LTV brackets, it's worth modeling whether buying down to the next tier makes economic sense over the loan term.
Debt Service Coverage (DSCR)
Lenders want to see cash flow that substantially covers your debt payment. Most permanent lenders require a minimum 1.20–1.25x DSCR. The better your DSCR, the better your pricing. A property clearing 1.50x DSCR will price meaningfully better than one at 1.21x. Strong cash flow coverage signals a resilient asset that can weather market softening.
Property Type
Florida multifamily consistently gets the best rates because lenders have the most data, the most competition, and the most government-backed programs available. Industrial is also well-priced. Retail is bifurcated — grocery-anchored retail prices well, while secondary or unanchored retail carries 50–100+ bps premium. Office has wide spread variability depending on occupancy, lease term, and submarket. Hospitality is underwritten on trailing EBITDA and carries higher rates.
Sponsor Track Record
Private lenders price experience. A sponsor with 20 successful exits in similar assets will price better than a first-time buyer in the same property. Life company and agency programs look at your full portfolio, net worth, and liquidity — not just the deal. Bridge and debt fund lenders weight sponsor experience heavily because their exit depends on your ability to execute the business plan.
Occupancy and Lease Term
Lenders lend on income, and income requires tenants with leases. A 95%-occupied office building with 7-year weighted average lease term prices significantly better than the same building at 75% occupancy with 2-year leases rolling. For multifamily, current occupancy and rent levels relative to market drive the underwritten DSCR.
Lender Appetite at the Moment
This is underappreciated and changes constantly. A lender that was aggressive on Florida retail six months ago may be pulling back today due to portfolio concentration. A life company that just had outperformance in multifamily may be actively seeking to grow that allocation. The best rate on your deal today isn't necessarily from the lender that was best six months ago — it's from the lender most active in your niche right now.
Fixed Rate vs. Floating Rate: Which Is Right Now?
With the 10-year Treasury at approximately 4.26%, fixed rates are meaningfully above the historic lows of 2020–2021 but well below the peaks of late 2023. Floating-rate SOFR-based bridge loans have also come in from their 2023 highs as SOFR has pulled back from its peak.
The fixed-vs.-floating decision depends on your hold period and risk tolerance:
- Locking in fixed for 5–10 years makes sense if you plan to hold the asset, want certainty, and believe rates are unlikely to drop dramatically from current levels. Life company and agency executions are particularly attractive for long-term holds.
- Floating-rate bridge financing makes sense if you have a 12–36 month business plan (value-add, stabilization, construction completion) and plan to refinance into permanent debt at exit. Just ensure you have a rate cap in place — lenders require it and it protects your downside.
- A 5-year fixed bank loan is a middle path that works well for shorter-hold value-add strategies where you want the certainty of a fixed rate but flexibility at the 5-year mark.
The 2026 Rate Outlook: What to Expect
The Federal Reserve has signaled a cautious posture on additional rate cuts through 2026. Inflation progress has slowed, and the central bank is unlikely to reduce rates aggressively without further evidence of cooling. Most market participants and Fed watchers project the 10-year Treasury to remain in the 4.0%–4.5% range through mid-2026.
What this means practically:
- Borrowers waiting for a meaningful rate decline before refinancing or acquiring are likely to wait a long time. The window for lower rates may not arrive in 2026.
- The maturity wall is real — borrowers who originated loans in 2019–2021 at sub-4% rates are facing the reality of refinancing at today's levels. The math requires higher NOI, lower leverage, or both.
- Lenders are actively competing for quality deals. Spread compression is possible even if index rates stay flat. Strong deals with solid fundamentals are getting good execution.
- Non-recourse CMBS and life company executions look particularly attractive for stabilized assets — locking in a 10-year fixed non-recourse loan today hedges against the risk of rates being meaningfully higher at your next refinance.
Florida-Specific Considerations
Florida's commercial real estate market has some dynamics that affect rate discussions in ways that don't apply in other states:
Insurance costs: Elevated property insurance premiums — particularly in coastal areas — have materially affected underwritten NOI and DSCR for many Florida commercial properties. Lenders are scrutinizing insurance costs more carefully and some are stress-testing insurance scenarios in underwriting. This effectively increases the required DSCR hurdle in many deals, which can limit proceeds or push rates up.
Multifamily market strength: South Florida, Tampa, and Orlando multifamily fundamentals remain strong relative to national averages. Agency and life company lenders are actively competing for Florida multifamily, which drives tighter pricing than many other markets nationally.
Industrial demand: Florida's industrial market has seen sustained demand from logistics, e-commerce, and supply chain diversification. Lenders are aggressive on well-located Florida industrial — often one of the better-priced property types in the state right now.
Office reality: Florida office has bifurcated sharply. Class A in Boca Raton, Miami, and Tampa CBD can still find financing at reasonable terms. Class B/C suburban office is increasingly difficult to finance at all. If you're trying to refinance a suburban Florida office, expect lender selectivity and wider spreads.
How to Get the Best Commercial Mortgage Rate in Florida
The following steps consistently produce better rate outcomes for Florida commercial borrowers:
- Create competition. Never negotiate with a single lender. Even two competing term sheets meaningfully improve your terms. Three is better. An experienced mortgage broker does this efficiently — submitting to the right lenders simultaneously rather than sequentially.
- Optimize your LTV first. If you can put in an additional 5–10% equity and drop below a key LTV threshold (say, from 75% to 70%), the rate improvement often more than justifies the additional capital deployed.
- Maximize your DSCR documentation. Lenders underwrite to historical income. If your last 12 months reflect any anomalies (major tenant vacancy now resolved, above-market insurance now renegotiated), document the correction carefully. A well-packaged submission tells a better story than raw financials.
- Match the lender to the deal. The best life company for a Miami multifamily may be entirely wrong for a Tampa industrial flex. Different lenders have different sweet spots, minimum loan sizes, geographic preferences, and property type appetites. Using a broker who actively tracks lender appetite means hitting the right lender, not just the obvious one.
- Consider a floating rate with a cap. In a range-bound rate environment, a floating-rate structure at SOFR + 200 bps (roughly 6.5% today with a rate cap) can start lower than a fixed-rate alternative, while protecting you from rate spikes through the cap.
Frequently Asked Questions
What are current commercial mortgage rates in Florida?
As of April 2026, commercial mortgage rates in Florida range from approximately 5.30% to 12.75% depending on loan type. Life company and agency loans offer the lowest rates (5.30%–6.25%), while bridge and construction loans carry higher rates (8%–12.75%) due to shorter terms and higher risk. The 10-year Treasury — the primary benchmark for fixed-rate permanent loans — was approximately 4.26% in April 2026.
What is the lowest commercial mortgage rate available in Florida right now?
The lowest commercial mortgage rates in Florida are typically available through HUD/FHA programs (starting around 5.0%–5.50% for qualifying multifamily properties) and life insurance company loans (starting around 5.30%). These programs offer 25–35 year fixed non-recourse terms but have strict property quality and sponsorship requirements.
How are commercial mortgage rates different from residential rates?
Commercial mortgage rates are generally higher than residential rates and price off different benchmarks. Residential loans track the 30-year fixed mortgage market. Commercial loans price off the 10-year Treasury (for fixed-rate loans) or SOFR (for floating-rate loans), plus a risk-based spread that varies by property type, leverage, DSCR, and sponsor track record.
What is a typical commercial loan spread over the 10-year Treasury?
Spreads for permanent commercial loans typically range from 150 to 300 basis points over the 10-year Treasury. Life company loans price at the tightest spreads (150–200 bps). CMBS/conduit loans come in at 175–250 bps. Bank portfolio loans typically price at 200–300 bps. With the 10-year at ~4.26%, all-in rates for quality assets range from roughly 5.75% to 7.25%.
Are commercial mortgage rates going down in 2026?
Rate direction in 2026 is uncertain. The Fed has signaled caution on further cuts, and most market participants expect the 10-year Treasury to remain in the 4.0%–4.5% range through mid-2026. Borrowers expecting significant rate relief before year-end should temper expectations — the more productive question is which lender and structure makes the most sense at today's rates.
Do commercial mortgage rates vary by property type in Florida?
Yes — significantly. Multifamily properties consistently get the lowest rates due to agency programs and strong fundamentals. Industrial also receives favorable pricing. Retail, office, and hospitality typically pay 25–100+ basis points more depending on occupancy, lease structure, and lender appetite. Florida's coastal insurance costs also affect effective underwriting on many property types.
How do I get the best commercial mortgage rate?
The most effective ways: (1) Create lender competition — never negotiate with only one lender. (2) Lower your LTV if you can. (3) Maximize DSCR documentation with strong trailing financials. (4) Use a broker who actively tracks which lenders have appetite for your specific deal type right now. (5) Consider a floating-rate structure with a cap if your hold period is under 3 years.
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About the Author: Michael Brown is the Principal of Banyan Commercial Capital, an independent commercial mortgage brokerage headquartered in Boca Raton, Florida. With over 20 years of experience and $2B+ in closed transactions, Michael and his team specialize in debt, mezzanine, preferred equity, and joint venture capital for commercial real estate across Florida and nationwide. Connect on LinkedIn →