Commercial Refinance Loans in Dallas, Texas: Rates, Requirements, and Market Guide

Why Is Dallas One of the Best Markets for Commercial Refinancing in 2026?

Dallas-Fort Worth has been named the number one commercial real estate market to watch for two consecutive years by PwC and the Urban Land Institute. That distinction matters for property owners considering a refinance. Strong population growth, corporate relocations, and sustained investor confidence have kept property values resilient across most asset classes, giving borrowers solid collateral positions when approaching lenders.

For owners holding commercial properties in Dallas, refinancing in 2026 presents a strategic opportunity. Interest rates have stabilized compared to the volatility of 2023 and 2024, with commercial mortgage rates starting as low as 5.18% for agency loans. At the same time, approximately $936 billion in commercial real estate loans are scheduled to mature nationally in 2026 (a 19% increase over 2025), making proactive refinancing essential for Dallas property owners who want to lock in favorable terms before the maturity wave intensifies competition for capital.

Whether you own a multifamily complex in Uptown, an industrial warehouse near DFW Airport, or a retail center in Plano, understanding the local refinance landscape can help you reduce your debt service, pull out equity for improvements, or simply secure better loan terms. Use our commercial mortgage calculator to estimate your potential savings.

What Are Current Commercial Refinance Rates in Dallas?

Commercial refinance rates in Dallas vary significantly depending on the loan type, property class, and borrower profile. As of early 2026, here is what Dallas borrowers can expect across the major lending channels:

Agency Loans (Fannie Mae and Freddie Mac): Starting around 5.18% for stabilized multifamily properties. These offer some of the lowest rates available, with terms up to 30 years and loan-to-value ratios up to 80%.

CMBS Loans: Averaging 6.4% with spreads of 225 to 300 basis points over benchmarks. A Dallas investor refinancing a 120-unit Class B apartment complex with a 1.35x DSCR could lock a 10-year fixed CMBS loan around 6.50% to 7.00%, non-recourse.

SBA 504 Loans: The SBA 504 program offers 20-year fixed rates around 5.91% and 25-year rates near 5.85%, making it attractive for owner-occupied commercial properties.

Bank Loans: A borrower with a 720 credit score and a stabilized 40-unit apartment complex in the DFW metro could realistically lock in a 5-year fixed bank loan in the mid-5% range at 70% LTV and a 1.30x debt service coverage ratio.

Bridge Loans: Ranging from 9.0% to 12.0%, with Texas markets often pricing 100 basis points cheaper than coastal markets. Bridge loans are ideal for value-add projects that need short-term capital before qualifying for permanent financing.

Dallas commercial mortgage rates have been trending favorably compared to the national average, partly due to the strong fundamentals of the local market. Lenders view DFW as a lower-risk market because of its diversified economy, population growth, and relatively affordable cost of living. Check current rates with our DSCR calculator to see where your property stands.

What Types of Commercial Properties Can You Refinance in Dallas?

Dallas-Fort Worth supports refinancing across virtually every commercial property type. However, lender appetite and terms vary depending on the asset class and current market conditions.

Multifamily: This remains the most financeable asset class in Dallas. With rents averaging around $1,500 per unit and vacancy stabilizing near 12%, lenders are actively competing for multifamily refinance business. Class A properties in prime submarkets like Uptown trade at cap rates of 4.8% to 5.2%, while value-add suburban deals in Garland, Grand Prairie, and Mesquite yield 5.7% to 6.3%.

Industrial: DFW industrial demand outpaced supply in 2025 for the first time since 2021. Vacancy dropped to 9.2% (down 60 basis points year over year), and rental rates rose to $9.87 per square foot, reflecting 3.9% annual growth. This makes industrial properties in South Dallas, North Fort Worth, and the Alliance corridor highly attractive to refinance lenders.

Retail: DFW retail rents have grown 4.6% annually over the past three years, with average asking rents now at $24.91 per square foot. Strong consumer spending and low vacancy make retail properties viable refinance candidates, particularly in high-traffic areas.

Office: Office remains the most challenged sector, with vacancy at 25.0% as of Q3 2025. However, a distinct "flight to quality" is underway. Class A and trophy office properties in Uptown are attracting strong tenant demand, while Class B and C buildings face tougher refinancing conditions. Office cap rates have expanded above 9% for distressed properties.

How Does the Dallas Submarket Affect Your Refinance Options?

Not all Dallas submarkets are created equal when it comes to refinancing. Lenders evaluate location as a primary risk factor, and your property's submarket can significantly influence the rates, leverage, and terms you receive.

Downtown and Uptown: These core urban submarkets command premium valuations and attract the most competitive financing. Uptown is the epicenter of new office construction in DFW, with nearly three-quarters of the metro's new Class A office development concentrated here. Multifamily and mixed-use properties in this corridor benefit from walkability, transit access, and strong tenant demand. Expect the best refinance terms available in the metro.

Deep Ellum and Design District: Cultural revitalization has transformed Deep Ellum into a sought-after location for creative office, retail, and hospitality uses. The Design District similarly attracts high-end retail and dining. Properties here benefit from strong rent growth and investor interest, though smaller deal sizes may limit lending options to local banks and credit unions.

Las Colinas and Irving: Las Colinas continues to be a major corporate hub with strong demand for Class A office space. Proximity to DFW Airport adds strategic value for corporate tenants. Refinancing office and mixed-use properties here remains viable, though borrowers should expect more conservative underwriting than peak years.

Plano and Frisco Corridor: This northern corridor has emerged as one of the fastest-growing submarkets in the nation. Corporate relocations (including Toyota, Liberty Mutual, and numerous tech firms) have driven demand across all property types. Multifamily and retail properties here typically receive favorable refinance terms due to strong demographics and income levels.

Arlington and Grand Prairie: These mid-cities submarkets offer value-add opportunities with higher cap rates. Industrial properties near the DFW Airport logistics corridor are particularly well-positioned. Lenders may require slightly higher DSCRs for properties in these areas compared to core Dallas locations.

DFW Airport Area: The airport corridor is a logistics and industrial powerhouse. With major distribution centers and e-commerce fulfillment operations, industrial properties here benefit from strong tenant demand and long-term lease stability, both of which support favorable refinance terms.

What Are the Requirements for a Commercial Refinance Loan in Dallas?

Lenders evaluating a commercial refinance in Dallas will assess several key factors. Meeting these requirements positions your application for the best possible terms.

Debt Service Coverage Ratio (DSCR): Most lenders require a minimum DSCR of 1.25x, meaning your property's net operating income must be at least 1.25 times the annual debt service. Stronger properties with DSCRs above 1.35x will qualify for better rates and higher leverage. Use our DSCR calculator to determine your property's ratio.

Loan-to-Value (LTV): Conventional refinance loans in Dallas typically cap at 65% to 75% LTV, though agency loans for multifamily can reach 80%. Properties with recent appraisals reflecting Dallas's strong market fundamentals may benefit from higher valuations.

Property Condition and Occupancy: Lenders want to see stabilized occupancy (typically 85% or higher) and a property in good physical condition. Deferred maintenance or high vacancy will limit your refinance options or push you toward bridge lending.

Borrower Financial Strength: Commercial lenders evaluate your personal financial statement, liquidity, net worth, and experience. Most require a net worth equal to or greater than the loan amount and liquidity of 6 to 12 months of debt service.

Environmental and Title Requirements: Phase I Environmental Site Assessments, clean title, and current property insurance are standard requirements. Dallas properties in flood-prone areas may need additional flood insurance documentation.

How Does the Maturity Wall Impact Dallas Property Owners?

The commercial real estate maturity wall is one of the most significant factors driving refinance activity in Dallas for 2026. Over $1.5 trillion in commercial real estate loans will mature nationally by the end of 2026, and the Dallas-Fort Worth metro is not immune to this pressure.

For Dallas property owners, the maturity wall creates both urgency and opportunity. If your loan was originated during the low-rate environment of 2020 to 2022, you are likely facing a refinance into higher rates. Properties that have maintained or grown their income can navigate this transition successfully, while those with declining occupancy or deferred maintenance may face a funding gap.

The good news for Dallas borrowers is that lenders remain active in the market. Agency lenders (Fannie Mae and Freddie Mac) continue to deploy capital aggressively for multifamily. CMBS issuance has recovered, and regional banks in Texas are selectively lending on well-positioned assets. The competitive lending environment in DFW means borrowers have more options than property owners in smaller or more distressed markets.

Property owners with loans maturing in the next 12 to 18 months should begin the refinance process now. Early engagement with a lender allows time for appraisals, environmental reports, and underwriting, all of which can take 60 to 90 days. Starting early also gives you leverage to shop multiple lenders for the best terms. Contact our team to discuss your refinance timeline.

What Is the Step-by-Step Process for Refinancing Commercial Property in Dallas?

Refinancing a commercial property in Dallas follows a structured process that typically takes 45 to 90 days from application to closing. Here is what to expect at each stage:

Step 1: Property and Financial Assessment. Gather your current rent roll, trailing 12-month operating statements, property tax records, and existing loan documents. This gives lenders the baseline data they need to evaluate your refinance.

Step 2: Lender Selection and Pre-Qualification. Work with a lending advisor to identify the best loan program for your property type and goals. Compare agency, CMBS, bank, and bridge options to find the right fit.

Step 3: Formal Application and Underwriting. Submit your complete loan package. The lender will order a third-party appraisal, environmental assessment, and property condition report. Underwriting typically takes 30 to 45 days.

Step 4: Loan Approval and Term Sheet. Once underwriting is complete, you will receive a term sheet outlining the rate, term, amortization, prepayment structure, and any reserves or escrows required.

Step 5: Legal Review and Closing. Your attorney reviews the loan documents, title is cleared, and the transaction closes. Funds are typically disbursed within a few business days of closing.

Throughout this process, maintaining open communication with your lender and responding promptly to information requests will help keep the timeline on track.

When Should Dallas Property Owners Consider a Cash-Out Refinance?

A cash-out refinance allows you to tap into your property's equity while maintaining ownership. In the Dallas market, this strategy is particularly valuable in several scenarios:

Capital Improvements: If your property needs renovations to compete with newer inventory, a cash-out refinance can fund those improvements. This is especially relevant for Class B multifamily properties in Dallas, where unit upgrades can drive $150 to $300 per month in rent premiums.

Portfolio Expansion: Dallas's strong market fundamentals create opportunities to acquire additional properties. Some investors are using cash-out refinances on stabilized assets to acquire distressed properties from overleveraged competitors facing the maturity wall.

Debt Consolidation: If you have multiple loans or mezzanine debt on a property, a cash-out refinance can consolidate everything into a single, lower-cost loan.

Tax Strategy: Refinance proceeds are not taxable income, making a cash-out refinance a tax-efficient way to access capital compared to selling a property.

Keep in mind that cash-out refinances typically come with slightly higher rates (10 to 25 basis points) and lower maximum LTV (usually capped at 65% to 70%) compared to rate-and-term refinances.

How Does Dallas Compare to Other Texas Markets for Commercial Refinancing?

Dallas-Fort Worth consistently ranks as the top commercial real estate market in Texas, and its refinancing environment reflects that strength. Here is how Dallas compares to other major Texas metros:

Dallas's advantage comes from several factors: a more diversified economy that is not dependent on energy (unlike Houston), a larger and more liquid investment market, and stronger population growth than Austin or San Antonio. These fundamentals translate to more competitive lending terms, higher property valuations, and greater lender confidence.

For property owners in Dallas, this means more options when refinancing. The depth of the lending market here, from agency lenders to CMBS shops to regional banks, creates competition that benefits borrowers.

What Are the Most Common Mistakes Dallas Borrowers Make When Refinancing?

Avoiding these common pitfalls can save Dallas property owners significant time and money during the refinance process:

Waiting Too Long to Start. With the maturity wall creating a surge in refinance demand, lender capacity is limited. Starting the process 6 to 12 months before your loan matures gives you the most options.

Not Shopping Multiple Lenders. Dallas has a deep lending market. Getting quotes from at least three to four lenders can reveal significant differences in rates, fees, and terms.

Ignoring Prepayment Penalties. Many existing commercial loans carry yield maintenance or defeasance requirements. Understanding these costs is essential before committing to a refinance, as they can significantly impact the economics of the transaction.

Underestimating Reserve Requirements. Lenders may require tax escrows, insurance escrows, and capital improvement reserves. Factor these into your cash flow analysis.

Neglecting Property Presentation. A well-maintained property with complete documentation closes faster and at better terms. Deferred maintenance or incomplete records create red flags for lenders.

Frequently Asked Questions About Commercial Refinancing in Dallas

What is the minimum loan amount for a commercial refinance in Dallas?

Most commercial lenders in Dallas set minimum loan amounts between $500,000 and $1 million. SBA 504 loans can start lower, at around $250,000, making them suitable for smaller owner-occupied properties. For larger institutional-quality assets, CMBS and agency loans typically start at $2 million to $5 million. The minimum varies by lender and loan program, so it is worth exploring multiple options regardless of your property size.

How long does a commercial refinance take in Dallas?

A typical commercial refinance in Dallas takes 45 to 90 days from application to closing. Agency loans (Fannie Mae and Freddie Mac) often close in 45 to 60 days, while CMBS loans may take 60 to 90 days due to additional securitization requirements. Bank loans can vary widely, from 30 days for existing relationships to 75 days for new borrowers. Starting early and having your documentation ready can significantly shorten the timeline.

Can I refinance a commercial property in Dallas with high vacancy?

Yes, but your options will be more limited. Most conventional and agency lenders require stabilized occupancy of 85% or higher. If your property has significant vacancy, bridge lenders and private capital sources can provide refinancing, typically at rates of 9% to 12% with shorter terms (12 to 36 months). The strategy is to use bridge financing to stabilize the property, then refinance into a permanent loan once occupancy improves.

What DSCR do Dallas lenders require for a commercial refinance?

Most Dallas lenders require a minimum debt service coverage ratio of 1.20x to 1.25x. Agency lenders for multifamily may accept 1.20x in strong markets, while banks and CMBS lenders typically want 1.25x to 1.35x. Properties with DSCRs above 1.40x are considered strong and will qualify for the best rates and terms. Our DSCR calculator can help you determine your property's current ratio.

Are there prepayment penalties when refinancing a commercial loan in Dallas?

Most commercial loans include some form of prepayment protection. Common structures include yield maintenance (compensates the lender for lost interest), defeasance (replacing the loan collateral with government securities), and step-down penalties (declining percentages over the loan term, such as 5-4-3-2-1). SBA loans have a three-year prepayment penalty. Understanding your existing prepayment terms is critical before initiating a refinance, as these costs can range from 1% to 10% or more of the loan balance.

Should I choose a fixed or variable rate for my Dallas commercial refinance?

The choice depends on your investment horizon and risk tolerance. Fixed-rate loans provide payment certainty and are ideal for long-term holds, currently ranging from 5.18% to 7.00% depending on the loan type. Variable-rate loans offer lower initial rates but carry interest rate risk. In the current environment, many Dallas borrowers are choosing fixed-rate options to lock in rates before potential economic uncertainty. If you plan to sell or renovate within two to three years, a variable-rate bridge loan may offer more flexibility.

Ready to explore your refinance options in Dallas? Contact Clear House Lending for a personalized quote, or visit our Dallas commercial loans page for more resources.