Columbus, Ohio, has transformed from a steady Midwest market into one of the most dynamic commercial real estate corridors in the country. With Intel committing $28 billion to semiconductor manufacturing in nearby New Albany, Anduril building a $1 billion autonomous weapons facility near Rickenbacker, and JPMorgan Chase anchoring over 12,000 employees at its Polaris campus, the capital city is generating the kind of institutional investment that reshapes entire submarkets.
For commercial property owners sitting on maturing debt or below-market financing, 2026 presents a strategic window. Rates have stabilized near cycle lows, lender competition is intensifying, and Columbus fundamentals across industrial, multifamily, and retail continue to strengthen. This guide breaks down everything you need to know about commercial refinance loans in Columbus.
Need Financing for This Project?
Stop searching bank by bank. Get matched with 6,000+ vetted lenders competing for your deal.
Why Is Columbus Attracting So Much Commercial Real Estate Capital?
Columbus has quietly assembled the ingredients that institutional investors prize: population growth, employment diversification, and infrastructure investment at a scale that rivals Sun Belt metros.
The city's population has grown steadily, making it Ohio's largest metro and one of the fastest-growing in the Midwest. Ohio State University alone contributes $19 billion annually to the state economy and supports roughly 117,000 jobs, creating a deep and stable labor pool that few mid-market cities can match.
The industrial corridor surrounding Rickenbacker International Airport has become a logistics powerhouse, with vacancy dropping to just 5.7% as major tenants expand. Amazon has invested over $1 billion regionally, and the broader Columbus industrial market recorded 3.3 million square feet of positive net absorption in Q4 2025 alone, pulling overall vacancy down to 7.2%.
Retail corridors like Short North, German Village, Easton, and Polaris continue to outperform. The Polaris area and Bethel Road corridor now sit below 2.5% availability, making them among the tightest retail submarkets in the entire Midwest. Pine Tree, a $2.5 billion portfolio company, recently acquired Easton Market for $76.8 million and Polaris Towne Center for $67 million, signaling strong institutional confidence.
All of this translates directly into refinance opportunity. Stronger fundamentals mean higher appraised values, better DSCR ratios, and more competitive loan terms.
What Commercial Refinance Rates Are Available in Columbus Right Now?
Ohio commercial mortgage rates started as low as 5.18% as of late 2025, though the rate you receive depends heavily on property type, leverage, and borrower strength.
Multifamily properties command the best terms, with agency lenders (Fannie Mae and Freddie Mac) offering fixed rates between 5.25% and 6.50% at up to 80% LTV with 30-year amortization. Industrial and warehouse assets follow closely, typically pricing between 5.50% and 6.75% through CMBS or bank channels.
Retail and office assets face wider spreads. Stabilized retail with strong tenancy can still secure rates in the 5.75% to 7.25% range, while office borrowers, particularly those with vacancy above 15%, may see rates climb to 8.00% or higher with lower leverage caps.
The key variable in Columbus is the strength of the submarket. A multifamily property in Short North or Dublin Bridge Park will price meaningfully better than a similar asset in a secondary suburban location. Lenders underwrite the micro-market, not just the metro.
For borrowers exploring their options, the commercial mortgage calculator can help model different rate and term scenarios.
Which Columbus Submarkets Offer the Strongest Refinance Fundamentals?
Not every Columbus submarket tells the same story. The spread between the best-performing and weakest corridors is wide enough to meaningfully impact your refinance terms.
Short North and German Village lead the pack with retail and mixed-use vacancy below 4%. These neighborhoods benefit from walkability, density, and a demographic profile that national retailers and restaurants actively target. Properties here consistently appraise at premium values, supporting higher LTV requests.
Polaris and Bethel Road Corridor anchor the northern suburbs with sub-2.5% retail availability. JPMorgan Chase's 2-million-square-foot Polaris campus, which houses over 12,000 employees, provides a massive demand anchor for surrounding retail, multifamily, and service properties. The recent $300 million renovation of the campus signals long-term commitment.
Dublin and Bridge Park represent Columbus's premium suburban mixed-use submarket. New development has attracted high-income tenants and top-tier retailers, making it one of the most sought-after locations for both investment and owner-occupied commercial properties.
Rickenbacker Industrial Corridor is the story of the decade. With Anduril planning to expand its Arsenal-1 facility from 700,000 to 5 million square feet and vacancy already sitting at 5.7%, this submarket is tightening rapidly. Industrial owners in this corridor are well-positioned for cash-out refinances that capture recent value appreciation.
Easton Area continues to draw investment, with Pine Tree's $76.8 million acquisition of Easton Market demonstrating institutional-grade pricing. Retail and mixed-use properties here benefit from strong traffic counts and a broad trade area.
Downtown and Suburban Office remain the weak spots. Office vacancy sits at approximately 21.0% metro-wide, though it has improved from 21.4% earlier in 2025. High-quality, amenity-rich buildings near downtown and the Short North are absorbing tenants, but commodity suburban office still faces headwinds. Refinancing office assets requires a compelling story about tenant retention and lease rollover.
Should You Refinance Your Columbus Property Now or Wait?
The maturity wall is no longer a future concern. Over $1.5 trillion in commercial real estate loans nationally will have matured by the end of 2026. For Columbus borrowers who locked in rates between 2019 and 2021, the gap is stark: the average interest rate on new CRE loans in 2025 was 6.24%, compared to 4.76% on the debt that is maturing. That 148-basis-point spread directly compresses your cash flow.
However, waiting carries its own risks. As more borrowers are forced to refinance, lender fatigue can lead to wider spreads, tighter covenants, and longer processing times. Borrowers who act early in 2026 benefit from lender competition while volumes remain manageable.
Columbus-specific factors favor refinancing now rather than later:
- Industrial and retail fundamentals are at or near cycle highs, supporting strong appraisals
- Multifamily cap rates have expanded to 6.7%, but the construction pipeline has dropped 75%, suggesting stabilization ahead
- Major employers like Intel, Anduril, and JPMorgan Chase provide long-term demand visibility that lenders value during underwriting
- The city was named a top-10 market by the National Association of Realtors for 2026, attracting capital that benefits all property types
The one exception is office. If your office property has significant lease rollover risk or vacancy above 20%, it may be worth exploring a bridge loan to stabilize before pursuing permanent refinance.
Another consideration is prepayment penalties on your existing loan. Many borrowers who locked in low rates during 2020 and 2021 face yield maintenance or defeasance costs that can run into six figures. Run the numbers carefully. In many cases, the long-term savings from refinancing into a new rate and term structure still outweigh the upfront prepayment cost, especially if you plan to hold the property for five or more years. Your lender or a commercial mortgage advisor can model the breakeven point.
What Are the Biggest Economic Catalysts Driving Columbus CRE Values?
Columbus is benefiting from a concentration of transformative projects that few mid-market metros can rival.
Intel's $28 Billion Semiconductor Complex in New Albany represents the single largest private-sector investment in Ohio history. While production timelines have shifted to 2030-2031, Intel committed to investing over $1 billion in 2025 alone on construction, and the project has already catalyzed supporting development across housing, retail, and industrial sectors in eastern Franklin County and Licking County.
Anduril's Arsenal-1 near Rickenbacker Airport will produce autonomous defense systems starting in mid-2026. The facility is backed by $310 million in JobsOhio grants and will create over 4,000 jobs by 2035. This single project is accelerating industrial absorption in the Rickenbacker corridor and driving demand for workforce housing in southern Franklin and Pickaway counties.
JPMorgan Chase operates the largest single-tenant office building in the United States outside the Pentagon at its Polaris campus. With 12,000 employees and a recently completed renovation featuring 17,000 LED fixtures, 2,600 occupancy sensors, and a 15-megawatt solar installation, JPMorgan's long-term commitment stabilizes the entire Polaris submarket.
Ohio State University generates $19 billion in annual economic impact and supports 117,000 jobs. The university's expansion plans, research commercialization efforts, and student population create steady demand for multifamily, retail, and mixed-use properties throughout the University District and surrounding corridors.
These catalysts do more than generate headlines. They give lenders confidence in long-term demand fundamentals, which translates into better underwriting assumptions and more favorable loan terms for Columbus borrowers.
The cumulative effect of these investments is a market that lenders view as having above-average growth potential with below-average volatility. When underwriters model rent growth and vacancy assumptions, Columbus benefits from a pipeline of demand drivers that extend well into the next decade. That translates directly into tighter spreads, higher LTV allowances, and faster approvals for borrowers with properties in the path of growth.
Columbus was also named one of the top 10 homebuying hot spots for 2026 by the National Association of Realtors, based on job growth, income trends, millennial household concentration, and migration patterns. This residential momentum creates spillover demand for retail, mixed-use, and multifamily commercial properties throughout the metro.
How Does the Refinance Process Work for Columbus Commercial Properties?
The commercial refinance process in Columbus follows a standard timeline, but local market nuances can impact each phase.
Pre-Qualification (Weeks 1-2): Assemble your property financials, including trailing 12-month operating statements, current rent roll, capital expenditure history, and your personal financial statement. Submit packages to 3-5 lenders simultaneously to create competitive tension. In Columbus, regional banks like Huntington, KeyBank, and Fifth Third often compete aggressively with national CMBS shops.
Term Sheet Review (Weeks 2-3): Compare offers on rate, LTV, amortization, prepayment penalties, and recourse requirements. Pay particular attention to the prepayment structure. Defeasance works well for long-hold investors, while step-down prepayment offers more flexibility for those who may sell within 5-7 years.
Appraisal and Inspections (Weeks 3-6): The lender will order a MAI appraisal, Phase I environmental assessment, and property condition report. Columbus appraisers have been busy, so build in extra time. Appraisals for industrial properties near Rickenbacker and multifamily in high-demand corridors have generally come in at or above expectations.
Underwriting (Weeks 4-8): The lender's credit team will stress-test your DSCR at various rate scenarios, review market comparable data, and assess lease rollover risk. Columbus's diverse employer base and positive absorption trends typically support favorable underwriting conclusions.
Closing (Weeks 8-12): Finalize loan documents, arrange defeasance or payoff of existing debt, and fund the new loan. Total timeline from initial inquiry to funding typically ranges from 45 to 90 days, depending on loan complexity and lender type.
To start the process, contact our team for a complimentary Columbus market analysis and loan comparison.
What Refinance Loan Types Are Available to Columbus Borrowers?
Columbus borrowers have access to the full spectrum of commercial refinance products. The right choice depends on your property type, hold period, and leverage needs.
Agency loans through Fannie Mae and Freddie Mac remain the gold standard for stabilized multifamily, offering the lowest rates, highest leverage, and longest terms. CMBS conduit loans work well for stabilized retail, industrial, and mixed-use properties where the borrower values non-recourse execution.
Local and regional banks, including Huntington, KeyBank, and Fifth Third, are particularly competitive in Columbus because they understand the submarkets and can move quickly on deals under $10 million. For owner-occupied properties, SBA 504 loans offer below-market fixed rates with 10- to 25-year terms.
Debt funds and bridge lenders serve a critical role for properties that need repositioning before qualifying for permanent financing. If you own a value-add multifamily that needs renovations or an office building with near-term lease rollover, a bridge loan can provide the capital and time needed to stabilize.
Life insurance companies target the lowest-risk deals: Class A assets with strong tenancy, low leverage, and long-term hold strategies. These lenders offer the most competitive fixed rates but require pristine properties and borrower profiles.
One strategy that works well in Columbus is layering a senior loan with mezzanine financing or preferred equity. For example, a $10 million industrial property near Rickenbacker might qualify for a $7 million bank loan at 70% LTV, with a $1.5 million mezzanine piece bringing total leverage to 85%. This structure works particularly well for acquisitions with a simultaneous refinance or for borrowers who need to extract equity without pushing the senior loan past comfortable LTV thresholds.
The choice of lender also affects your ability to execute future business plans. CMBS loans offer non-recourse execution but come with rigid prepayment structures and transfer restrictions. Bank loans provide more flexibility on prepayment and modifications but typically require personal recourse. Understanding these tradeoffs before you sign a term sheet can save significant headaches down the road.
For a broader overview of Columbus commercial loan options across all property types, visit the Columbus commercial loans hub.
Frequently Asked Questions
What is the minimum loan size for a commercial refinance in Columbus?
Most conventional commercial lenders in Columbus set a minimum loan amount between $500,000 and $1.5 million. CMBS conduit lenders typically start at $2 million, while agency multifamily programs begin at $1 million. For smaller properties, local banks and credit unions often have more flexible minimums, sometimes as low as $250,000 for well-qualified borrowers with existing relationships.
How do Columbus commercial refinance rates compare to other Ohio metros?
Columbus generally commands tighter spreads than Cleveland or Cincinnati for industrial and multifamily properties due to stronger demand fundamentals and population growth. Office rates across all three metros remain elevated. Columbus's advantage is most pronounced in the industrial sector, where Rickenbacker logistics activity and the Intel/Anduril pipeline give lenders more confidence in long-term absorption.
Can I do a cash-out refinance on my Columbus commercial property?
Yes. Most lenders allow cash-out refinances up to 75% of the appraised value for commercial properties and up to 80% for multifamily. The proceeds can be used for property improvements, acquisitions, or working capital. Columbus properties in high-demand submarkets like Polaris, Short North, and the Rickenbacker corridor have seen strong appraisal growth, making cash-out refinances particularly attractive right now.
What DSCR do lenders require for Columbus commercial refinances?
The standard minimum debt service coverage ratio is 1.25x, meaning your net operating income must be at least 25% greater than your annual debt service. Some agency multifamily programs accept 1.20x, while CMBS lenders may require 1.30x or higher for office and retail. Columbus's strong rent growth trends in industrial and multifamily sectors help borrowers clear these thresholds more easily than in weaker markets.
How long does a commercial refinance take in Columbus?
The typical timeline runs 45 to 90 days from application to funding. Agency multifamily loans can close in as little as 30 to 45 days with a cooperative borrower. CMBS loans often take 60 to 90 days due to the securitization process. Bank loans fall somewhere in between. The most common delays in Columbus involve appraisal scheduling, as the active investment market keeps appraisers busy, and environmental report turnaround times.
Should I refinance my Columbus office property in 2026?
It depends on your occupancy and lease term. If your building is above 85% occupied with a weighted average lease term of three or more years, refinancing now can lock in terms before the market shifts. If vacancy exceeds 20% or you have significant lease rollover within two years, a bridge loan may be a better interim step. Columbus office vacancy has improved from 21.4% to 21.0%, with amenity-rich buildings in downtown and near Short North absorbing tenants, so the trend is positive but gradual.