Commercial Refinance Loans in Jacksonville, Florida: Rates, Requirements, and Market Guide

Why Is Jacksonville a Prime Market for Commercial Refinancing in 2026?

Jacksonville, Florida has emerged as one of the strongest commercial real estate markets in the Southeast, creating both urgency and opportunity for property owners considering a refinance. With a population that surpassed the 1 million milestone in 2024 and a metro area exceeding 1.36 million residents, Jacksonville's growth trajectory continues to outpace most major U.S. cities. The metro area is projected to grow by 11% between 2023 and 2028, faster than any other major Florida metro and well above state and national averages.

For commercial property owners sitting on maturing loans, rising property values, or unfavorable legacy terms, commercial refinance loans offer a path to lower monthly payments, improved cash flow, and access to built-up equity. Jacksonville's economic fundamentals, including sustained population growth, robust job creation, and billions in infrastructure investment, make the city an attractive market for lenders and borrowers alike.

Jacksonville ranked third nationally for economic growth among large U.S. cities, powered by a 43% surge in GDP and 25% export gains during the 2022-2023 period. The Wall Street Journal named Jacksonville the second-hottest job market in the country in 2024, and the metro area led all Florida metros in year-over-year job gains through mid-2025. Since 2019, JAXUSA has helped more than 111 companies relocate or expand their operations in the region, creating over 16,000 new direct jobs and $6.2 billion in capital investment. These economic tailwinds support strong property valuations and favorable refinancing conditions.

What Are Current Commercial Refinance Rates in Jacksonville?

Commercial refinance rates in Jacksonville reflect the broader interest rate environment while benefiting from the city's strong market fundamentals. As of early 2026, Florida commercial mortgage rates start as low as 5.17%, with Jacksonville-specific commercial mortgage rates beginning at approximately 5.07%.

The Federal Reserve cut the federal funds rate by 50 basis points in September 2024, followed by 25-basis-point cuts at both the November and December 2024 meetings. However, long-term treasury rates moved in the opposite direction, with the 10-year Treasury jumping from roughly 3.70% in September 2024 to over 4.50% by late January 2025. This disconnect between short-term rate cuts and long-term rate movements has created a nuanced refinancing environment where timing and loan structure matter significantly.

For Jacksonville borrowers, rate availability depends on several factors: property type, loan-to-value ratio, debt service coverage, borrower experience, and the overall strength of the asset. Multifamily properties generally command the lowest rates due to strong agency (Fannie Mae, Freddie Mac) lending competition, while office and hospitality assets may carry slightly higher spreads reflecting sector-specific risk.

Use our commercial mortgage calculator to estimate your monthly payments and see how different rate scenarios affect your cash flow.

How Does the Loan Maturity Wall Affect Jacksonville Property Owners?

The commercial real estate industry is facing an unprecedented wave of loan maturities that directly impacts Jacksonville property owners. In 2025 alone, nearly $1 trillion in commercial real estate loans were scheduled to mature nationwide. Combined with 2026 maturities, the industry faces well over $1.5 trillion in refinancing activity within a two-year window. The total volume of distressed commercial assets reached $116 billion in the first quarter of 2025, a 31% increase from a year earlier.

Many Jacksonville borrowers who financed or refinanced properties during the low-rate environment of 2020-2021 at sub-4% interest rates are now approaching maturity or facing floating-rate resets. Today's higher cap rates and debt costs often result in a cash-neutral refinance or, in some cases, require additional equity at closing to meet current underwriting standards. This maturity wall creates both challenges and opportunities.

For well-positioned borrowers with stabilized properties and strong cash flow, the maturity wall means less competition from overleveraged owners and access to motivated lenders looking to deploy capital. Jacksonville's healthy market fundamentals, including population growth, low retail vacancy, and steady industrial demand, give local borrowers a meaningful advantage when approaching lenders for refinancing.

For property owners facing tighter conditions, understanding your options early is critical. Proactive refinancing, even 6 to 12 months before loan maturity, gives you time to shop rates, improve property performance, and structure the most favorable terms possible. Contact our team to start evaluating your refinance strategy.

What Types of Commercial Refinance Programs Are Available in Jacksonville?

Jacksonville borrowers have access to a full spectrum of commercial refinance programs, each suited to different property types, borrower profiles, and financial objectives.

Conventional Bank Refinancing

Local and regional banks in Jacksonville offer competitive refinance terms for stabilized commercial properties. Typical terms include up to 75% LTV (80% for multifamily), amortization periods of 20 to 30 years, and fixed-rate periods of 5 to 10 years. Banks generally require strong borrower financials, a minimum debt service coverage ratio (DSCR) of 1.20x to 1.30x, and demonstrated property performance. This option works best for borrowers with established banking relationships and well-performing assets.

Agency Loans (Fannie Mae and Freddie Mac)

For multifamily properties with five or more units, agency loans through Fannie Mae and Freddie Mac offer some of the most attractive refinance terms available. These programs feature LTV ratios up to 80%, amortization up to 30 years, and interest rates that are typically 25 to 75 basis points below conventional bank rates. Agency loans are particularly appealing for Jacksonville multifamily owners, given the city's strong renter demand and the 7,000 units absorbed in 2024.

CMBS (Commercial Mortgage-Backed Securities)

CMBS loans provide non-recourse refinancing for larger commercial properties, typically $2 million and above. These loans offer fixed rates for terms of 5 to 10 years, LTV ratios up to 75%, and flexible underwriting that focuses more on property cash flow than borrower net worth. CMBS refinancing is well-suited for Jacksonville office, retail, and industrial properties where non-recourse terms are a priority.

SBA 504 Refinancing

Owner-occupied commercial properties in Jacksonville can benefit from SBA 504 refinancing, which offers up to 90% LTV, below-market fixed rates for terms up to 25 years, and the ability to roll in eligible closing costs and improvement expenses. This program is particularly valuable for small business owners looking to reduce monthly payments or extract equity from their commercial property.

DSCR-Based Refinancing

For investors focused on property income rather than personal income verification, DSCR loans evaluate qualification based on the property's debt service coverage ratio. Jacksonville's strong rental market, with multifamily cap rates averaging 5.5% to 6.5% and retail vacancy at just 4.8%, supports favorable DSCR calculations for many property types.

Cash-Out Refinancing

Jacksonville property owners who have built significant equity through appreciation, debt paydown, or property improvements can access that equity through cash-out refinancing. Most programs allow cash-out up to 70-75% of the property's current appraised value. Cash-out proceeds can fund additional acquisitions, property improvements, or portfolio diversification.

Which Jacksonville Submarkets Show the Strongest Refinance Fundamentals?

Jacksonville's diverse submarkets each present distinct refinancing profiles based on property performance, vacancy rates, and growth trajectories. Understanding submarket dynamics helps borrowers position their refinance applications for the best possible terms.

Downtown and Southbank

Downtown Jacksonville is undergoing a massive transformation, with billions in active development reshaping the urban core. The $693 million RiversEdge mixed-use project, the $96.9 million Artea apartment complex on the Southbank near the Kings Avenue Skyway station, and the $215 million Four Seasons hotel (slated for 2026 completion) are attracting new residents and commercial tenants. For property owners in this submarket, rising valuations driven by development activity can support higher appraised values at refinancing, potentially improving LTV ratios and enabling cash-out proceeds. Haskell's $30 million headquarters renovation at 701 San Marco Boulevard signals continued corporate investment on the Southbank.

San Marco

San Marco's blend of historic character, walkability, and proximity to downtown development makes it a strong refinancing market. Mixed-use and retail properties benefit from consistent foot traffic and a loyal local consumer base. The 701 San Marco building's $3.1 million lobby renovation and Seacoast Bank's expansion at 1001 Kings Avenue demonstrate ongoing commercial investment. Lenders view San Marco favorably due to its stable tenant base and limited new supply.

Riverside and Avondale

These adjacent neighborhoods along the St. Johns River feature strong rental demand from young professionals, a vibrant restaurant and retail scene, and historic architecture that commands premium rents. Multifamily and mixed-use property owners in Riverside/Avondale often find favorable refinancing terms due to high occupancy rates and steady rent growth. Properties in designated historic districts may qualify for additional tax incentive programs that improve overall returns.

Beaches Area

The Jacksonville Beaches corridor (Jacksonville Beach, Neptune Beach, Atlantic Beach) benefits from tourism, Naval Station Mayport's approximately $1 billion annual economic impact, and consistent population growth. Hospitality, retail, and multifamily properties in this submarket enjoy strong seasonal and year-round demand, supporting favorable DSCR calculations for refinancing. Properties near the beach typically maintain lower vacancy rates and command rent premiums.

St. Johns Town Center and Southside

The Town Center/Southside area serves as Jacksonville's premier retail and mixed-use destination. Jacksonville's retail sector maintained a remarkably low 4.8% vacancy rate in Q4 2025, even with nearly 600,000 square feet of new construction delivered during the year. The metro area accounted for more than 5% of national retail demand despite representing only 0.5% of the U.S. population. These metrics give lenders confidence in the submarket's stability, often resulting in more favorable refinance terms and higher LTV allowances for retail properties.

Northside and Airport Corridor

JAXPORT's ongoing expansion, including a $72 million SSA Terminal modernization and over $70 million in new container crane investments, drives industrial and logistics demand along the Northside corridor. The port supports more than 228,100 jobs and generates $44 billion in annual economic output. Industrial property owners refinancing in this submarket benefit from strong tenant demand and long-term lease structures that lenders favor.

Mandarin

Mandarin, located in the southern portion of Jacksonville, offers a suburban commercial environment with established retail corridors and medical office properties. The submarket's stable demographics and proximity to major employers make it a reliable refinancing market, particularly for neighborhood retail centers and professional office buildings.

What Are the Key Requirements for Commercial Refinancing in Jacksonville?

Lenders evaluating Jacksonville commercial refinance applications focus on several core criteria. Understanding these requirements in advance helps borrowers prepare stronger applications and negotiate better terms.

Debt Service Coverage Ratio (DSCR)

Most lenders require a minimum DSCR of 1.20x to 1.30x, meaning the property's net operating income must exceed annual debt payments by 20% to 30%. Jacksonville's strong rental market helps many properties meet or exceed these thresholds. For multifamily assets, agency lenders may accept DSCRs as low as 1.15x for properties with strong occupancy and rent growth trajectories.

Loan-to-Value (LTV)

Maximum LTV ratios for Jacksonville commercial refinances typically range from 65% to 80%, depending on property type and loan program. Multifamily properties generally qualify for the highest LTV ratios (up to 80%), while office and specialty assets may see caps at 65% to 70%. SBA 504 programs offer the highest leverage at up to 90% for qualifying owner-occupied properties.

Property Condition and Environmental

Lenders require a recent appraisal (typically within 6 to 12 months), a Phase I environmental site assessment, and documentation of property condition. Jacksonville's proximity to the St. Johns River and Atlantic coast means lenders pay particular attention to flood zone determinations and insurance requirements. Properties in FEMA-designated flood zones will need flood insurance, which should be factored into operating expense projections.

Borrower Financial Strength

For recourse loans, lenders evaluate the borrower's personal net worth (typically requiring net worth equal to the loan amount), liquidity (6 to 12 months of debt service reserves), and credit history (minimum 680 score for most programs). Non-recourse options like CMBS loans focus more heavily on property-level metrics.

Occupancy and Lease Terms

Stabilized occupancy of 85% or higher is the standard threshold for most refinance programs. Lenders also evaluate lease rollover risk, tenant creditworthiness, and weighted average lease terms. Jacksonville's low vacancy rates across retail (4.8%) and strong multifamily absorption help many properties meet these requirements comfortably.

How Does the Refinance Process Work for Jacksonville Commercial Properties?

The commercial refinance process in Jacksonville follows a structured timeline, typically spanning 45 to 90 days from application to closing.

Phase 1: Pre-Qualification and Rate Shopping (Weeks 1-2)

Gather your property financials (rent rolls, operating statements, tax returns), entity documents, and personal financial statements. Submit your loan package to multiple lenders for competitive quotes. Comparing at least three to five offers ensures you secure the best available rate and terms for your property.

Phase 2: Application and Third-Party Reports (Weeks 2-4)

Once you select a lender and sign a term sheet, the formal application process begins. The lender orders a commercial appraisal, Phase I environmental report, and property condition assessment. In Jacksonville, appraisals typically take 2 to 4 weeks depending on property complexity and comparable availability.

Phase 3: Underwriting and Approval (Weeks 4-6)

The lender's underwriting team analyzes the appraisal, financial statements, rent roll, and market data to determine final loan terms. For Jacksonville properties, underwriters evaluate submarket vacancy trends, comparable cap rates, and local economic factors. Expect requests for additional documentation during this phase.

Phase 4: Closing and Funding (Weeks 6-8)

After loan approval, the lender issues final loan documents for review and execution. Closing takes place through a title company, with proceeds disbursed to pay off the existing loan and (for cash-out refinances) fund the borrower's designated account. Title insurance, recording fees, and any prepayment penalties on the existing loan are settled at closing.

What Cap Rate and Valuation Trends Should Jacksonville Borrowers Understand?

Cap rates and property valuations directly impact refinancing outcomes because they determine the appraised value that sets your maximum loan amount. Jacksonville's cap rate environment in 2025-2026 reflects both national trends and local market dynamics.

Jacksonville's multifamily cap rates moved from 5.14% at the end of 2023 to 5.05% at the end of 2024 for Class A and B properties, while value-add assets compressed from 5.69% to 5.38% over the same period. The overall commercial property average cap rate sits at approximately 7.37%, with industrial properties commanding cap rates in the 4.5% to 5.5% range.

For refinancing purposes, cap rate compression means higher property valuations, which translates to more borrowing capacity at the same LTV ratio. Jacksonville's cap rate stability, combined with steady NOI growth driven by population influx and job creation, creates favorable conditions for property owners seeking to maximize their refinance proceeds.

Jacksonville's multifamily market showed signs of stabilization in Q3 2025, with vacancy edging down to 12.2%. Meanwhile, the industrial vacancy rate rose to 10.8% by Q4 2025 as approximately 7 million square feet of new speculative space was delivered throughout the year. For industrial property owners approaching a refinance, demonstrating strong occupancy relative to submarket averages will be key to achieving the best valuation.

Learn more about commercial loans in Jacksonville and how local market conditions affect your financing options.

What Are Common Mistakes to Avoid When Refinancing in Jacksonville?

Commercial refinancing involves significant costs and long-term commitments. Avoiding these common pitfalls can save Jacksonville property owners thousands of dollars and months of unnecessary delays.

Waiting Too Long to Start the Process

With $1.5 trillion in commercial loans maturing in 2025-2026 nationwide, lenders are experiencing higher application volumes and longer processing times. Starting your refinance 6 to 12 months before loan maturity gives you adequate time to shop rates, complete due diligence, and avoid last-minute extension fees on your existing loan.

Ignoring Prepayment Penalties

Many existing commercial loans carry prepayment penalties such as yield maintenance, defeasance, or step-down structures that can significantly impact the cost-benefit analysis of refinancing. Calculate your prepayment penalty precisely before committing to a new loan, as the penalty may offset the interest savings from a lower rate.

Underestimating Operating Expenses

Jacksonville property owners should account for rising insurance costs (Florida property insurance has increased substantially in recent years), property taxes that may be reassessed upon refinancing, and maintenance reserves. Lenders scrutinize operating expense projections closely, and overly optimistic assumptions can lead to lower appraised values and reduced loan proceeds.

Failing to Shop Multiple Lenders

Rate spreads between lenders for the same Jacksonville property can vary by 25 to 75 basis points. Comparing quotes from banks, credit unions, life insurance companies, CMBS lenders, and agency programs ensures you capture the most competitive terms available for your specific property type and borrower profile.

Neglecting Property Improvements Before Appraisal

Simple improvements like fresh paint, landscaping, deferred maintenance repairs, and updated common areas can materially impact your appraisal value. Investing $10,000 to $50,000 in strategic improvements before ordering your refinance appraisal can result in a valuation increase that far exceeds the improvement cost.

Frequently Asked Questions About Commercial Refinancing in Jacksonville, FL

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

Most commercial lenders in Jacksonville set minimum loan amounts between $250,000 and $1 million, depending on the program. SBA 504 refinancing is available for loans starting at $125,000, while CMBS and agency programs typically require minimums of $1 million to $2 million. Smaller properties below these thresholds may qualify for portfolio lending through local banks and credit unions.

Can I refinance a commercial property in Jacksonville with below-average occupancy?

Yes, though your options may be more limited. Most conventional and agency programs require stabilized occupancy of 85% or higher. Properties below this threshold may qualify for bridge-to-permanent financing, where a short-term loan funds the lease-up period before converting to a permanent refinance. Jacksonville's low retail vacancy (4.8%) and strong multifamily absorption suggest that below-average occupancy is often a temporary condition that can be addressed with targeted leasing efforts.

How much equity do I need to refinance a Jacksonville commercial property?

Equity requirements depend on the loan program. Most conventional refinances require 20% to 35% equity (65-80% LTV), while SBA 504 programs may allow as little as 10% equity for owner-occupied properties. For cash-out refinances, expect to retain at least 25% to 30% equity after the new loan closes. Jacksonville's property appreciation over recent years means many owners have accumulated more equity than they realize.

Are there prepayment penalties when refinancing out of an existing commercial loan?

Most commercial loans include some form of prepayment protection. Common structures include yield maintenance (compensates the lender for lost interest income), defeasance (substituting the loan collateral with government securities), and declining-balance penalties (typically starting at 5% and stepping down 1% per year). Review your existing loan documents carefully, as prepayment penalties can range from negligible to several hundred thousand dollars depending on the remaining term and rate differential.

How long does a commercial refinance take to close in Jacksonville?

Most commercial refinances in Jacksonville close within 45 to 90 days from application. SBA 504 refinances may take 60 to 120 days due to additional government approval requirements. Factors that accelerate the timeline include having complete financial documentation ready at application, a recent appraisal (within 6 months), clean title, and a responsive borrower who addresses lender requests promptly.

What happens if my Jacksonville commercial property appraises for less than expected?

A lower-than-expected appraisal reduces your maximum loan amount, which may result in a cash shortfall at closing (particularly for rate-and-term refinances) or less cash-out proceeds than planned. Options include challenging the appraisal with additional comparables, bringing additional equity to closing, negotiating a higher LTV with the lender, or ordering a second appraisal through a different appraiser. Proactive property improvements before the appraisal and providing the appraiser with a detailed income and expense summary can help support a higher valuation.

Ready to explore your commercial refinancing options in Jacksonville? Contact Clear House Lending to receive a customized rate quote and refinance analysis for your property.