Why Is Fort Worth an Attractive Market for Commercial Refinancing in 2026?
Fort Worth surpassed the 1 million resident milestone in 2025, growing 11.1% since 2020, faster than any other major Texas city, including Austin. That rapid expansion has fueled demand across every commercial property type, supporting property values and rental income that make refinancing favorable for existing owners.
The city's economic engine has diversified well beyond its ranching and oil heritage. Texas A&M is expanding its downtown campus, Lockheed Martin continues aerospace operations at Naval Air Station Fort Worth, and the healthcare and logistics sectors have added thousands of jobs. Tourism alone generates nearly $700 million in annual economic impact and supports more than 30,000 hospitality jobs. These fundamentals give lenders confidence in Fort Worth collateral.
For property owners evaluating a commercial refinance, the timing carries both urgency and opportunity. Nearly $936 billion in commercial real estate loans are scheduled to mature nationally in 2026, a 19% jump over 2025. Fort Worth borrowers who act proactively can secure competitive terms before that maturity wave intensifies competition for capital. Current commercial mortgage rates start as low as 5.18% for agency loans, offering meaningful savings compared to bridge or mezzanine debt.
Need Financing for This Project?
Stop searching bank by bank. Get matched with 6,000+ vetted lenders competing for your deal.
What Are Current Commercial Refinance Rates in Fort Worth?
Commercial refinance rates in Fort Worth track closely with broader DFW metro pricing, though individual deals vary based on property type, leverage, and borrower strength. As of early 2026, here is what Fort Worth borrowers can expect:
Agency Loans (Fannie Mae and Freddie Mac): Starting around 5.18% to 5.75% for stabilized multifamily properties. These programs offer the lowest rates available, with terms up to 30 years, amortization schedules up to 35 years, and loan-to-value ratios reaching 80%. Fort Worth's strong multifamily demand makes it a prime market for agency lending.
CMBS Loans: Averaging 6.40% to 7.25% with spreads of 225 to 300 basis points over the 10-year Treasury (currently around 4.26%). Non-recourse CMBS financing works well for larger Fort Worth properties, particularly retail centers, industrial portfolios, and stabilized office buildings with strong tenants.
SBA 504 Loans: The SBA 504 program offers 20-year fixed rates around 5.91% and 25-year rates near 5.85%. This is an excellent option for owner-occupied commercial properties in Fort Worth, including medical offices, restaurants, and small manufacturing facilities.
Bank Loans: Regional and community banks in Tarrant County offer 5-year and 7-year fixed rates in the mid-5% to low-6% range for stabilized assets at 65% to 75% LTV. Borrowers with existing banking relationships often receive the most favorable pricing.
Bridge Loans: Ranging from 9.0% to 12.0%, with 12 to 36 month terms. Bridge loans serve Fort Worth investors who need short-term capital for property stabilization before qualifying for permanent financing.
The federal funds rate held steady at 3.50% to 3.75% as of January 2026, and the 10-year Treasury sits near 4.26%. Lenders view Fort Worth as a lower-risk market because of its population growth, economic diversity, and affordable cost of living relative to coastal metros. That perception translates into competitive spreads for qualified borrowers.
What Types of Properties Can You Refinance in Fort Worth?
Fort Worth's commercial real estate market supports refinancing across all major property types, though lender appetite and terms vary by asset class and current conditions.
Multifamily: This is the most actively financed property type in Fort Worth. The metro absorbed strong new supply in 2024 and 2025, and investment momentum improved with cap rates averaging 5.7% in Q4 2025. Class A properties in the Cultural District and Near Southside trade at tighter caps (4.9% to 5.3%), while value-add opportunities in East Fort Worth and Haltom City offer yields in the 6.0% to 6.5% range. Agency lenders are competing aggressively for Fort Worth multifamily refinance business.
Industrial: The Alliance corridor and Intermodal Hub in North Fort Worth represent one of the strongest industrial submarkets in all of Texas. DFW industrial vacancy dropped in 2025, and rental rates grew 3.9% year over year to $9.87 per square foot. Logistics, e-commerce fulfillment, and manufacturing tenants keep occupancy high, making industrial properties highly attractive refinance candidates.
Retail: DFW retail vacancy remains under 5%, with rents topping $25 per square foot in prime locations. Fort Worth's Sundance Square, Clearfork, and the University Drive corridor benefit from strong consumer spending. Most retail assets trade at 6% to 7% cap rates, with premium centers below 5%. Lenders view stabilized Fort Worth retail favorably for refinancing.
Office: Downtown Fort Worth's office market holds a significant advantage over Dallas, with vacancy at just 11.5% compared to Dallas's 26%. The ongoing Texas A&M campus expansion and corporate relocations to the West 7th corridor support tenant demand. Class A office properties here are financeable, though lenders are more conservative on Class B and C assets.
Hospitality and Special Purpose: Fort Worth's tourism economy (nearly 12 million visitors annually) supports refinancing for hotels, entertainment venues, and mixed-use hospitality projects, particularly in the Stockyards district and Cultural District.
How Do Fort Worth Submarkets Affect Your Refinance Terms?
Lenders evaluate location as a primary risk factor, and Fort Worth's diverse submarkets produce meaningfully different refinance outcomes. Understanding your submarket's strengths helps you position your application for the best possible terms.
Downtown and Sundance Square: Fort Worth's urban core commands premium valuations and attracts the most competitive financing. The $1 billion Sundance Square development, Tarrant County Courthouse area, and expanding convention district make this the city's top refinance submarket. Office vacancy here (11.5%) is roughly half the national average, and mixed-use projects benefit from walkability and cultural attractions.
Near Southside and Medical District: This rapidly gentrifying area between downtown and TCU has attracted significant investment in mixed-use, multifamily, and medical office properties. The presence of major hospital systems creates stable, long-term tenant demand. Lenders view Near Southside favorably for both rate-and-term and cash-out refinances.
West 7th and Cultural District: The West 7th corridor has evolved into one of Fort Worth's most desirable live-work-play neighborhoods. Multifamily, retail, and restaurant properties here benefit from high foot traffic and strong demographics. Refinance terms in this submarket are competitive, particularly for well-maintained mixed-use projects.
Alliance and North Fort Worth: This industrial and logistics powerhouse is home to the Alliance Airport, BNSF Intermodal, and hundreds of distribution facilities. Industrial properties in this corridor are among the easiest to refinance in all of Texas, given strong tenant demand and long-term lease stability.
Stockyards District: The ongoing $175 million Mule Alley redevelopment and Stockyards Heritage District improvements have transformed this historic area into a premier hospitality and entertainment destination. Hotels, restaurants, and retail properties here benefit from Fort Worth's tourism growth.
East Fort Worth and Polytechnic Heights: These emerging neighborhoods offer value-add opportunities with higher cap rates. Lenders may require slightly higher DSCRs and lower LTVs for properties here compared to core Fort Worth locations, but the upside potential attracts investors seeking repositioning plays.
What Are the Requirements for a Commercial Refinance in Fort Worth?
Lenders evaluating Fort Worth refinance applications assess several key criteria. Meeting or exceeding these thresholds positions you for the best rates and highest leverage.
Debt Service Coverage Ratio (DSCR): Most lenders require a minimum of 1.25x, meaning your property's net operating income must cover at least 125% of annual debt service. Agency loans for multifamily may accept 1.20x in strong Fort Worth submarkets. Properties with DSCRs above 1.40x qualify for the most competitive terms. Use our DSCR calculator to evaluate where your property stands.
Loan-to-Value (LTV): Conventional refinance loans cap at 65% to 75% LTV, while agency multifamily programs can reach 80%. Fort Worth's appreciation trends may support higher appraised values than borrowers expect, particularly for properties in the Cultural District, West 7th, and Alliance corridors.
Occupancy and Stabilization: Lenders generally require 85% or higher occupancy for conventional refinancing. Properties below that threshold are typically directed toward bridge lending. Fort Worth's overall commercial occupancy rates compare favorably to the national average, making stabilization easier to demonstrate.
Borrower Financial Strength: Lenders evaluate personal financial statements, liquidity (6 to 12 months of debt service), net worth (typically equal to or greater than the loan amount), and commercial real estate experience. First-time borrowers can qualify but should expect more conservative terms.
Documentation Package: A complete refinance application includes trailing 12-month operating statements, current rent roll, property tax records, existing loan documents, Phase I Environmental Site Assessment, insurance certificates, and entity formation documents.
How Does the Maturity Wall Impact Fort Worth Property Owners?
The commercial real estate maturity wall is reshaping refinance dynamics across the nation, and Fort Worth property owners face the same pressures. Nearly $936 billion in CRE loans are scheduled to mature in 2026, with multifamily maturities alone surging 56% from $104.1 billion in 2025 to $162.1 billion in 2026.
For Fort Worth borrowers, the maturity wall creates a dual challenge. First, loans originated during the low-rate environment of 2020 to 2022 (when rates were 3.0% to 4.0%) are refinancing into a market where comparable rates run 5.18% to 7.25%. That rate gap means higher debt service payments, potentially requiring additional equity or a smaller loan balance. Second, the sheer volume of maturing loans is straining lender capacity, meaning borrowers who wait may face longer timelines and less favorable terms.
However, Fort Worth's market fundamentals provide a buffer that many markets lack. The city's rapid population growth, low office vacancy relative to national averages, and diversified economy give lenders confidence in the underlying collateral. Properties that have maintained or grown their net operating income since origination can navigate the maturity wall successfully.
The "extend and pretend" strategy, where lenders modify or extend loans to delay defaults, has been widely used through 2024 and 2025. But that approach has limits. Borrowers who have been relying on extensions should begin seriously evaluating permanent refinance options now. Contact our team to discuss your maturity timeline and explore solutions before options narrow.
What Is the Step-by-Step Process for Refinancing in Fort Worth?
A commercial refinance in Fort Worth typically takes 45 to 90 days from application to closing. Understanding each phase helps you prepare and avoid delays.
Step 1: Property and Financial Assessment. Compile your current rent roll, trailing 12-month profit and loss statements, Tarrant County property tax records, and existing loan documents. Run your numbers through our commercial mortgage calculator to estimate new debt service and determine your refinance goals.
Step 2: Lender Selection and Pre-Qualification. Identify the best loan program for your property type and objectives. Compare agency, CMBS, bank, and bridge options. Fort Worth borrowers benefit from having access to both national lenders and strong regional banks like Frost Bank, BBVA, and independent community banks in Tarrant County.
Step 3: Formal Application and Underwriting. Submit your complete loan package. The lender orders a third-party appraisal (critical in Fort Worth's appreciating market), environmental assessment, and property condition report. Underwriting typically takes 30 to 45 days.
Step 4: Loan Approval and Term Sheet. You receive a binding term sheet detailing the rate, term, amortization schedule, prepayment structure, and any reserve or escrow requirements.
Step 5: Legal Review and Closing. Your attorney reviews loan documents, title is cleared through a Tarrant County title company, and the transaction closes. Proceeds are typically disbursed within a few business days.
Starting early gives you leverage to shop multiple lenders and negotiate better terms. Respond promptly to information requests to keep your timeline on track.
When Should Fort Worth Property Owners Consider a Cash-Out Refinance?
A cash-out refinance lets you access accumulated equity while retaining ownership of your property. In Fort Worth's appreciating market, this strategy is particularly powerful in several scenarios:
Capital Improvements and Value-Add Renovations: Fort Worth's multifamily market rewards unit upgrades with rent premiums of $150 to $300 per month. If your property needs renovations to compete with newer inventory in the West 7th or Near Southside corridors, a cash-out refinance can fund those improvements without diluting your ownership through equity partners.
Portfolio Expansion: Some Fort Worth investors are using cash-out refinances on stabilized assets to acquire properties from overleveraged owners facing the maturity wall. This strategy works especially well in the current environment, where distressed sellers in certain submarkets are creating acquisition opportunities.
Debt Consolidation: If you hold multiple loans, mezzanine debt, or preferred equity on a single property, a cash-out refinance can consolidate everything into one lower-cost, first-lien mortgage.
Tax-Efficient Capital Access: Refinance proceeds are not taxable income, making a cash-out refinance a tax-efficient alternative to selling a property and triggering capital gains. For Fort Worth owners sitting on significant appreciation, this preserves long-term wealth.
Cash-out refinances typically carry slightly higher rates (10 to 25 basis points above rate-and-term) and cap at 65% to 70% LTV versus 75% to 80% for rate-and-term refinances. Factor these differences into your analysis.
How Does Fort Worth Compare to Other Texas Markets for Refinancing?
Fort Worth offers a compelling blend of growth, affordability, and market depth that positions it as one of the strongest refinance markets in Texas. Here is how it stacks up:
Fort Worth's competitive edge rests on several factors. Downtown office vacancy at 11.5% dramatically outperforms Dallas (26%) and the national average (over 20%). Population growth of 11.1% since 2020 leads all major Texas cities. The industrial corridor anchored by Alliance Airport rivals any logistics hub in the state. And the cost of doing business remains lower than Austin, attracting both employers and residents.
For refinance borrowers, this translates to lender confidence, competitive rates, and multiple financing options. Fort Worth benefits from the deep DFW lending market (the largest in Texas) while maintaining fundamentals that often outperform the broader metro.
What Mistakes Should Fort Worth Borrowers Avoid When Refinancing?
Navigating a commercial refinance successfully requires avoiding common pitfalls that can cost you time, money, or both.
Starting Too Late. With nearly $936 billion in CRE loans maturing in 2026, lender pipelines are filling quickly. Begin the refinance process at least 6 to 12 months before your loan matures. Early movers get more options and better pricing.
Failing to Shop Multiple Lenders. Fort Worth borrowers have access to the deep DFW lending market. Obtain quotes from a minimum of three to four lenders across different categories (agency, CMBS, bank) to find the best combination of rate, leverage, and terms.
Overlooking Prepayment Penalties. Your existing loan likely includes yield maintenance, defeasance, or step-down prepayment provisions. These can cost 1% to 10% or more of the outstanding balance. Factor this into your refinance economics before committing.
Neglecting Property Presentation. Deferred maintenance, incomplete documentation, or unclear rent rolls create red flags that slow underwriting and may result in worse terms. Present your property at its best.
Ignoring Reserve Requirements. Lenders often require tax escrows, insurance escrows, replacement reserves, and sometimes lease-up reserves. Build these costs into your cash flow projections before comparing loan offers.
Visit our Fort Worth commercial loans page for additional resources on financing options in the metro.
Frequently Asked Questions
What is the minimum loan amount for a commercial refinance in Fort Worth?
Most commercial lenders in Fort Worth set minimum loan amounts between $500,000 and $1 million. SBA 504 loans can start lower, around $250,000, making them suitable for smaller owner-occupied properties like medical offices or local restaurants. Agency loans typically start at $1 million to $3 million, while CMBS transactions generally begin at $2 million to $5 million. For smaller deals, community banks in Tarrant County often provide the most flexible options.
How long does a commercial refinance take to close in Fort Worth?
Most commercial refinances in Fort Worth close within 45 to 90 days from application. Agency loans (Fannie Mae and Freddie Mac) tend to close in 45 to 60 days, bank loans range from 30 to 75 days depending on the relationship, and CMBS loans require 60 to 90 days due to additional securitization requirements. Having your documentation organized (rent rolls, T-12 financials, tax records) before applying can shorten the timeline significantly.
Can I refinance a Fort Worth property that has high vacancy?
Yes, but your options will be more limited than for a stabilized asset. Conventional and agency lenders require 85% or higher occupancy. If your property falls below that threshold, bridge lenders and private capital sources can provide refinancing at rates of 9% to 12% with 12 to 36 month terms. The strategy is to use bridge financing to stabilize the property, then refinance into a permanent loan once occupancy recovers.
What DSCR do Fort Worth lenders require for a commercial refinance?
Most Fort Worth lenders require a minimum debt service coverage ratio between 1.20x and 1.35x. Agency lenders may accept 1.20x for well-located multifamily properties. Banks and CMBS lenders typically want 1.25x to 1.35x. Properties with DSCRs above 1.40x are considered strong candidates and qualify for the most favorable rates and maximum leverage. Our DSCR calculator can help you determine where your property stands.
Should I choose a fixed or variable rate for my Fort Worth refinance?
The answer depends on your hold period and risk tolerance. Fixed-rate loans (currently 5.18% to 7.25% depending on loan type) provide payment certainty and protection against rate increases. Variable-rate loans offer lower initial rates but expose you to interest rate volatility. In the current environment, with the 10-year Treasury near 4.26% and the Fed holding rates at 3.50% to 3.75%, many Fort Worth borrowers are locking in fixed rates for stability. If you plan to sell or reposition within two to three years, a variable-rate bridge loan may offer more flexibility.
Are there prepayment penalties when refinancing a commercial loan in Fort Worth?
Almost all commercial loans include prepayment protection. Common structures include yield maintenance (compensating the lender for lost interest income), defeasance (replacing loan collateral with government securities), and step-down penalties (declining percentages such as 5-4-3-2-1 over the loan term). SBA loans carry a three-year prepayment penalty. Understanding your existing prepayment terms is critical before starting a refinance, as these costs can range from 1% to more than 10% of the loan balance and directly affect whether refinancing makes economic sense.
Ready to explore commercial refinance options in Fort Worth? Contact Clear House Lending for a personalized rate quote, or visit our Fort Worth commercial loans page for more resources tailored to the local market.