Why Is Aurora Emerging as One of Colorado's Most Dynamic Commercial Real Estate Markets?
Aurora has established itself as one of the fastest-growing and most economically diverse cities in Colorado, offering commercial real estate investors a compelling combination of population growth, major institutional anchors, and strategic infrastructure advantages. With a population of approximately 414,000 residents, Aurora is the third-largest city in the state and a key component of the Denver-Aurora-Lakewood metropolitan area, one of the strongest commercial real estate markets in the Mountain West.
The numbers behind Aurora's growth tell a persuasive story. The city has achieved a five-year compound growth rate of roughly 4.1%, outpacing Colorado's statewide growth rate of approximately 3.2%. Aurora supports more than 150,000 jobs across healthcare, aerospace, defense, logistics, and technology sectors, and the city's economic development pipeline continues to attract both private investment and institutional capital at a pace that few peer cities can match.
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At the center of Aurora's transformation is the Fitzsimons Innovation Community and the University of Colorado Anschutz Medical Campus, a combined 578-acre development representing the largest medical-related redevelopment in the United States. With a total investment exceeding $4.3 billion and a projected employment base of approximately 45,000 workers, this campus is reshaping the commercial real estate landscape across the entire eastern Denver metro. The development includes the Bioscience 4 life science facility (planned for 230,000 to 800,000 square feet), the Fitz 500 mixed-use office building, and The Benson Hotel and Faculty Club.
Aurora's commercial lending environment reflects the city's momentum. Colorado commercial mortgage rates start as low as 5.17%, and the broader national lending market has seen loan originations rise roughly 36% year-over-year in the third quarter of 2025. An estimated $936 billion in commercial mortgages will mature in 2026 nationwide, creating significant refinancing activity that Aurora borrowers can leverage to secure competitive terms.
For borrowers exploring financing options, Clear House Lending connects Aurora investors and developers with a network of over 6,000 commercial lenders to find the most competitive rates and terms for their specific project.
What Loan Programs Are Available for Aurora Commercial Properties?
Aurora's commercial lending market offers a full spectrum of financing programs suited to different property types, investment strategies, and borrower profiles. Understanding which program aligns with your project is the first step toward securing competitive terms.
Conventional Commercial Mortgages represent the foundation of Aurora's CRE lending market. Banks and credit unions offer permanent financing with rates between 5.5% and 7.5%, 20 to 25 year amortization, and loan-to-value (LTV) ratios up to 75%. These loans require strong borrower credit, property cash flow with a debt service coverage ratio (DSCR) of 1.25x or higher, and a stabilized operating history. Colorado-based lenders including FirstBank, Vectra Bank, and Alpine Bank actively lend on Aurora commercial properties.
Bridge Loans provide short-term capital for acquisitions, value-add repositioning, and time-sensitive transactions. Aurora bridge lenders offer 12 to 36 month terms with rates between 8.0% and 12.0%, LTV up to 80%, and closing timelines as fast as 5 to 15 days. Bridge financing is particularly active in Aurora for industrial acquisitions along the I-70 corridor and multifamily value-add plays in the City Center and Original Aurora neighborhoods.
SBA Loans serve owner-occupants acquiring or expanding commercial properties. The SBA 7(a) and 504 programs offer down payments as low as 10%, fixed rates between 5.5% and 8.0%, and terms up to 25 years. Aurora's SBA lending market is robust, driven by the city's growing base of small businesses in healthcare services, aerospace supply chain, and professional services clustered around the Anschutz Medical Campus and along the Havana Street corridor.
DSCR Loans qualify borrowers based on property cash flow rather than personal income, making them ideal for scaling rental portfolios. Aurora DSCR lenders offer LTV up to 80%, rates between 7.0% and 9.5%, and no income verification requirements. These loans work well for Aurora investors acquiring stabilized multifamily properties, single-tenant retail buildings, or industrial flex space along the I-225 corridor.
CMBS (Conduit) Loans provide non-recourse permanent financing for stabilized properties valued at $2 million or more. Rates range from 5.8% to 7.5% with 10 year terms and 30 year amortization. CMBS lending is active in Aurora for larger industrial, retail, and multifamily assets.
Construction and Development Loans finance ground-up projects and major renovations. Bank construction loans offer rates between 7.0% and 9.0% with 18 to 36 month terms and up to 70% loan-to-cost. Aurora's active development pipeline, particularly in the Fitzsimons area and along the I-70 industrial corridor, creates ongoing demand for construction financing.
Use the commercial mortgage calculator to estimate monthly payments across different loan programs and scenarios for your Aurora property.
What Are Current Cap Rates and Returns Across Aurora Property Types?
Cap rates serve as a barometer for property values and investor expectations in Aurora. Understanding how cap rates vary by property type and quality helps investors underwrite acquisitions and evaluate financing structures.
Multifamily cap rates in Aurora generally range from the mid-4% range for institutional-quality Class A assets to the 6% to 6.5% range for value-add and Class B/C properties. The Denver-Aurora metro area experienced a surge of roughly 20,000 new apartment units delivered in 2024, pushing vacancy rates to approximately 7%, the highest level in many years. However, the construction pipeline is tapering, and industry projections suggest vacancy rates could drop toward more normal levels by late 2026 as absorption catches up with supply. Aurora's median apartment rent of approximately $1,895 per month provides solid cash flow fundamentals.
Industrial properties along Aurora's I-70 corridor represent one of the strongest asset classes in the market. The corridor contains approximately 40 million square feet of product with the Majestic Commercenter alone planned for 21 million square feet at full build-out. Metro Denver industrial vacancy reached roughly 7.9% in Q3 2025, with asking rents hovering around $12 per square foot annually. Cap rates for Class A industrial range from 5.0% to 5.8%, while Class B assets trade at 5.8% to 6.5%. Major tenants including Amazon, Home Depot, Kroger, Wayfair, and UPS anchor demand in this submarket.
Office cap rates vary widely in Aurora, ranging from 6.5% for premium assets near the Fitzsimons campus to 9.0% or higher for suburban Class B/C properties facing elevated vacancy. Aurora's overall office market includes approximately 9.8 million square feet across 318 buildings, with overall vacancy between 10.4% and 15.6% depending on the data source. The Fitzsimons area stands as a bright spot, with approximately 6 million square feet of corporate and research space in the Colorado Science and Technology Park commanding premium rents.
Retail cap rates in Aurora range from 5.5% for grocery-anchored and lifestyle retail to 7.0% for secondary strip centers. Southlands Town Center, the largest non-enclosed mall in the United States at over 917,000 square feet, anchors Southeast Aurora's retail market and continues to perform well relative to broader retail trends.
Borrowers evaluating acquisitions should use the DSCR calculator to model cash flow coverage ratios and determine how much leverage their Aurora property can support.
Which Aurora Submarkets Offer the Strongest Investment Opportunities?
Aurora's submarket landscape is diverse, with each area offering distinct risk and return profiles for commercial real estate investors. Location selection significantly impacts financing terms, as lenders evaluate submarket fundamentals when underwriting loans.
Fitzsimons/Anschutz Medical Campus represents Aurora's premier institutional submarket and the epicenter of the city's commercial real estate transformation. The $4.3 billion Fitzsimons Innovation Community encompasses life science labs, medical office buildings, research facilities, hotels, and residential units. The new Fitz 500 office building will add over 200,000 square feet of Class A office and retail space, while Bioscience 4 is planned to deliver 230,000 to 800,000 square feet of lab space for startups and commercial companies. Lenders view Fitzsimons assets very favorably due to the institutional tenant base and long-term demand drivers from the University of Colorado health system.
The I-70 Industrial Corridor is Aurora's logistics and distribution powerhouse, stretching east toward Denver International Airport. The corridor includes the 1,600-acre Majestic Commercenter, HighPoint Logistics Park (125 acres, 2.2 million square feet), and the Aero 70 Logistics Park delivering four new buildings in late 2025. Companies like Amazon, Dollar General, Whole Foods, and Xcel Energy have built-to-suit facilities here. Proximity to DIA (approximately 12 miles), major highway access via I-70 and E-470, and rail connectivity make this one of the most strategically located industrial corridors in the Mountain West.
City Center/Original Aurora offers value-add opportunities in multifamily, retail, and small commercial properties. Aurora's original downtown area along Colfax Avenue and the Havana Street Business Improvement District are experiencing revitalization driven by RTD light rail connectivity and targeted city investment. Cap rates of 6.0% to 7.5% and below-market rents create upside for investors willing to renovate and reposition.
Southlands/Southeast Aurora is the city's premier lifestyle retail destination, anchored by the 917,000 square foot Southlands Town Center. The area's growing residential population, strong household incomes, and access to open space and amenities drive steady retail and multifamily demand. Lenders favor this submarket for its stable demographics and proven tenant demand.
Northeast Aurora/Painted Prairie represents Aurora's newest growth frontier, with master-planned residential communities, new retail, and proximity to DIA driving rapid development. This area is attracting speculative industrial and flex space development as the residential base expands.
What Major Development Projects Are Reshaping Aurora?
Aurora's development pipeline includes several transformative projects that will reshape the city's commercial real estate landscape and create financing opportunities for years to come.
The Fitzsimons Innovation Community stands as Aurora's most ambitious development, transforming the former Fitzsimons Army Medical Center into a world-class life sciences and healthcare campus. The combined 578-acre area of CU Anschutz and the Fitzsimons Life Science District represents the largest medical-related redevelopment project in the United States. Recent and planned additions include Bioscience 4, a phased life sciences facility starting at 230,000 square feet with the ability to scale to 800,000 square feet. The Fitz 500 office building will deliver eight stories of flexible office and retail space. Aimco, a major apartment REIT, has deepened its co-commitment to the campus vision with residential developments.
The Majestic Commercenter is a premier master-planned industrial park spanning more than 1,600 acres along the I-70 corridor with direct access to Denver International Airport. At full build-out, the park will feature more than 21 million square feet of Class A industrial space, making it one of the largest industrial developments in the Denver metro area.
HighPoint Logistics Park is transforming a 125-acre parcel near DIA into a 2.2 million square foot industrial park. Several buildings have already been completed, including built-to-suit facilities for Whole Foods, Dollar General, and Xcel Energy, with additional phases under construction.
The Aero 70 Logistics Park is delivering four new industrial buildings in late 2025 with 32 to 36 foot clear heights, Class AA features, and trailer parking, targeting the growing demand for modern logistics space along the I-70 corridor.
These mega-projects create ripple effects across Aurora's commercial market, increasing demand for supporting retail, hospitality, and residential properties. Developers and investors positioned in adjacent areas can benefit from the infrastructure improvements and demand spillover these projects generate.
Contact Clear House Lending to discuss financing for projects in Aurora's growth corridors.
How Do Aurora Commercial Loan Rates Compare to National Averages?
Aurora's commercial lending market benefits from strong competition among local, regional, and national lenders, generally producing rates at or slightly below national averages for comparable property types and borrower profiles.
The broader interest rate environment has stabilized heading into 2026. Colorado commercial mortgage rates start as low as 5.17% as of late 2025, while Denver apartment loan rates begin at approximately 5.18% as of February 2026. The federal funds rate settled at roughly 3.64% as of December 2025, and financing conditions are expected to continue improving with interest rates trending lower and becoming more stable. This creates a financing environment more conducive to deal-making for Aurora borrowers.
Aurora-specific factors that influence lending terms include the city's strong population growth trajectory, the institutional demand driver of the Anschutz Medical Campus, proximity to Denver International Airport, and the active industrial development pipeline along I-70. Lenders view Aurora as a growth submarket within the broader Denver metro, with lower land costs and stronger yield potential compared to core Denver locations. Properties near the Fitzsimons campus, along the I-70 corridor, and in the Southlands area generally receive the most competitive pricing.
Many borrowers who are looking to refinance loans taken out five to ten years ago face challenges because current rates remain higher than the historically low rates of 2020 and 2021. These borrowers may need to inject additional equity or take on partners to meet current underwriting requirements. However, the stabilizing rate environment and improving lending appetite are creating better options for refinancing than at any point since the rate hiking cycle began.
What Property Types Are Aurora Lenders Most Eager to Finance?
Lender appetite in Aurora varies by property type, reflecting the relative risk profiles and market fundamentals of each sector. Understanding lender preferences helps borrowers position their financing requests for the best possible terms.
Industrial and logistics properties attract the strongest lender interest in Aurora. With approximately 40 million square feet of inventory along the I-70 corridor, proximity to Denver International Airport, and major tenants including Amazon, Home Depot, and UPS, industrial assets represent lower-risk lending opportunities. Lenders offer the most aggressive terms for modern warehouse and distribution facilities, particularly those with strong tenant credit and long-term leases in developments like Majestic Commercenter and HighPoint Logistics Park.
Medical office and life science properties near the Fitzsimons/Anschutz campus command exceptional lender interest. The 6 million square feet of corporate and research space in the Colorado Science and Technology Park, combined with the university hospital system's expanding footprint, creates stable, credit-worthy tenancy that lenders prize. This is one of Aurora's unique competitive advantages compared to other Denver metro submarkets.
Multifamily properties remain highly financeable despite elevated vacancy in the broader Denver-Aurora metro. Lenders recognize that the supply wave is cresting, with deliveries expected to slow and vacancy rates projected to normalize through 2026. Aurora's median rent of approximately $1,895 per month provides solid fundamentals, and value-add properties in the City Center and Original Aurora neighborhoods attract strong bridge lending interest.
Retail properties benefit from Aurora's growing population base and established retail destinations. Southlands Town Center's continued strong performance, combined with neighborhood retail demand along Havana Street and in Southeast Aurora, supports favorable lending terms for anchored and necessity-based retail.
Office properties present a more nuanced lending landscape in Aurora. Medical office and life science space near Fitzsimons commands strong interest, but general office in other Aurora submarkets faces higher lender scrutiny due to elevated vacancy. Adaptive reuse and conversion projects may attract specialized financing.
What Should Aurora Borrowers Know About the Loan Application Process?
Securing competitive commercial financing in Aurora requires thorough preparation and a clear understanding of what lenders evaluate during the underwriting process.
Aurora commercial lenders evaluate four primary categories during underwriting: property fundamentals (including location, condition, cash flow, and tenant quality), borrower qualifications (including net worth, liquidity, credit history, and real estate experience), market conditions (including submarket vacancy, rent trends, and comparable sales), and deal structure (including LTV, DSCR, and loan term relative to lease expirations).
For stabilized acquisitions and refinances, lenders require a complete loan package that includes trailing 12-month operating statements, a current rent roll, property tax records, insurance documentation, and recent capital expenditure history. The property must demonstrate a DSCR of 1.20x to 1.35x depending on the loan program, meaning the property's net operating income must exceed the annual debt service by 20% to 35%.
For value-add and transitional properties, Aurora lenders want to see a detailed business plan with realistic renovation budgets, projected rent increases supported by comparable properties, and a clear timeline for stabilization. Bridge lenders focus heavily on the borrower's experience executing similar projects and the availability of liquid reserves to fund unexpected costs.
Construction loan applications require the most documentation, including architectural plans, general contractor agreements with guaranteed maximum pricing, Phase I environmental assessments, and detailed draw schedules. Aurora construction lenders require equity contributions of 25% to 40% funded before the first draw.
Contact Clear House Lending to begin the pre-qualification process and get matched with Aurora lenders suited to your specific property and investment strategy.
What Economic Factors Support Long-Term CRE Investment in Aurora?
Aurora's long-term commercial real estate investment thesis rests on several structural economic advantages that differentiate it from many competing markets in the Mountain West.
The Anschutz Medical Campus and Fitzsimons Innovation Community represent Aurora's most powerful economic anchor. With approximately 45,000 projected employees and $4.3 billion in total investment, this campus creates durable demand for medical office, life science, multifamily, retail, and hospitality properties across the surrounding area. The University of Colorado health system, Children's Hospital Colorado, and a growing cluster of biotech and pharmaceutical companies generate high-income employment that supports premium rents.
Aerospace and defense form another critical pillar of Aurora's economy. Colorado has the second-largest aerospace economy in the United States with nearly 350 companies, and Aurora sits at the center of this cluster. Raytheon, Northrop Grumman, Lockheed Martin, and Boeing all maintain major operations in Aurora. Buckley Space Force Base, home to the 460th Space Wing, provides global defense capabilities and employs thousands of military and civilian personnel.
Transportation infrastructure gives Aurora a strategic advantage for industrial and logistics investment. Denver International Airport is approximately 12 miles from Aurora's industrial corridor, and the I-70/I-225/E-470 highway network provides efficient access to regional and national distribution routes. The RTD light rail system connects Aurora to downtown Denver and the broader metro area through nine stations, supporting transit-oriented development and workforce mobility.
Population growth and diversification continue to drive demand across all property types. Aurora's population has grown to over 414,000, and the city's diverse demographic profile, with residents from over 160 countries, creates demand for a wide range of retail, restaurant, and service-oriented commercial properties.
Philip Morris International, Dollar General, and United Airlines have all established operations in Northeast Aurora, further diversifying the employment base beyond healthcare and defense.
Frequently Asked Questions About Commercial Loans in Aurora
What is the minimum loan amount for an Aurora commercial mortgage?
Minimum loan amounts for Aurora commercial mortgages vary by lender and program. Conventional bank loans typically start at $500,000 to $1 million. SBA 7(a) loans can be as small as $150,000, while SBA 504 loans generally start at $500,000. CMBS conduit loans typically require a minimum of $2 million. Bridge and hard money lenders may fund deals as small as $250,000. Clear House Lending's network includes lenders across all size ranges, ensuring Aurora borrowers can find appropriate financing regardless of deal size.
How long does it take to close a commercial loan in Aurora?
Closing timelines for Aurora commercial loans depend on the loan type. Bridge and hard money loans can close in 5 to 15 business days. Conventional bank loans typically require 45 to 75 days. SBA loans take 60 to 120 days due to the government guarantee process. CMBS loans generally close in 60 to 90 days. Construction loans require 60 to 120 days depending on the complexity of the project. The timeline begins after the lender receives a complete loan application with all required documentation.
Do I need to be located in Aurora to get a commercial loan there?
No. Aurora commercial lenders finance out-of-state investors and developers regularly. Many national and regional lenders in Clear House Lending's network actively seek Aurora deals from borrowers based anywhere in the country. However, lenders may require that you have a local property management team or experienced operating partner in the Denver-Aurora metro, particularly for value-add and development projects. Your real estate experience, financial strength, and the quality of the deal matter more than your physical location.
What credit score do I need for an Aurora commercial loan?
Credit score requirements vary by loan program. Conventional bank loans typically require a minimum credit score of 680 to 700. SBA loans require 650 or higher, though scores above 680 receive more favorable terms. DSCR loans may accept scores as low as 620. Bridge and hard money lenders focus more on property fundamentals and borrower experience than credit scores, with some accepting scores below 600. CMBS loans are underwritten primarily on property cash flow and may have more flexible personal credit requirements.
What is the current average interest rate for Aurora commercial loans?
As of early 2026, Aurora commercial loan rates range from approximately 5.2% for the most competitive conventional and SBA permanent loans to 12% or higher for bridge and hard money financing. Colorado commercial mortgage rates start as low as 5.17%, and Denver apartment loan rates begin at roughly 5.18%. Specific rates depend on property type, LTV, borrower strength, and loan term. Stabilized industrial and multifamily properties with strong cash flow command the lowest rates, while transitional properties, construction loans, and higher-leverage deals carry higher rates.
Can I refinance my existing Aurora commercial property to pull out equity?
Yes. Cash-out refinancing is available for Aurora commercial properties that have appreciated in value or paid down existing debt. Most lenders allow cash-out up to 70% to 75% LTV on the current appraised value. The property must demonstrate adequate cash flow to service the new, larger loan, typically requiring a DSCR of 1.25x or higher. Cash-out proceeds can be used for renovations, acquisitions of additional properties, business purposes, or other investments. Many Aurora properties, particularly those near the Fitzsimons campus and in the I-70 industrial corridor, have experienced significant appreciation that owners can leverage through refinancing.
Positioning Your Aurora Investment for Success
Aurora's commercial real estate market offers a compelling combination of institutional-quality economic anchors, strategic transportation infrastructure, an active development pipeline, and diverse property investment opportunities. Whether you are acquiring a stabilized multifamily property near the Anschutz Medical Campus, developing industrial space along the I-70 corridor, financing retail near Southlands Town Center, or exploring SBA financing for an owner-occupied building along Havana Street, understanding the lending landscape is critical to maximizing your returns.
The key to securing the best financing terms in Aurora is working with a lending partner who understands the local market and has relationships with lenders who actively finance Aurora commercial properties across all asset classes.
Contact Clear House Lending today to discuss your Aurora commercial real estate project and get matched with the right lender from our network of over 6,000 commercial lending sources.