Long Beach is one of the most dynamic and strategically positioned commercial real estate markets in Southern California. As home to the Port of Long Beach, the second busiest container port in the United States, the city anchors a logistics and trade infrastructure that drives billions of dollars in economic activity annually. Combined with a resurgent aerospace sector branded as "Space Beach," a revitalized downtown waterfront, and proximity to the greater Los Angeles metro, Long Beach offers a compelling landscape for commercial real estate investors and business owners seeking financing.
Clear House Lending provides commercial real estate financing throughout Long Beach and the surrounding South Bay region, from conventional commercial mortgages and SBA loans to bridge financing and DSCR loans. This guide covers current market conditions, loan programs, interest rates, and submarket insights to help you navigate the Long Beach commercial lending environment in 2026.
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What Does the Long Beach Commercial Real Estate Market Look Like in 2026?
Long Beach entered 2026 with a commercial real estate market defined by sector divergence and cautious optimism. The city's population of approximately 466,000 makes it the seventh largest city in California and a major economic engine within Los Angeles County. Its diversified economy, spanning port logistics, aerospace and defense, healthcare, higher education through California State University Long Beach (CSULB), and tourism, provides a broad demand base that insulates the market from single-industry risk.
The industrial sector remains the strongest asset class in Long Beach. The Port of Long Beach processed a record 9.9 million twenty-foot equivalent units (TEUs) in 2025, making it the busiest year in the port's 115-year history. This surge in cargo activity, driven partly by importers frontloading shipments ahead of tariff changes, has sustained demand for warehouse, distribution, and logistics facilities across the city. Average industrial rents in the South Bay submarket sit at approximately $1.00 per square foot NNN, with building sales averaging around $252 per square foot and cap rates near 5.9%. Vacancy has risen to roughly 12.3% as recent deliveries absorb into the market, but occupancy remains healthy at approximately 91%.
The multifamily sector continues to perform well. Average apartment rents in Long Beach range from approximately $2,640 to $2,690 per month, reflecting year-over-year increases of roughly 1% to 3%. Vacancy rates remain tight at approximately 3.9% to 5.3%, well below the national average. The combination of coastal location, transit access via the Blue Line and Metro system, and relative affordability compared to neighboring Los Angeles neighborhoods drives persistent rental demand. Downtown Long Beach has seen particularly strong rent growth as new mixed-use developments come online.
The office sector tells a more challenging story. Downtown Long Beach office vacancy has climbed to approximately 31.6%, up dramatically from around 18% in 2019. The widespread adoption of remote and hybrid work models has reduced demand for traditional office space, mirroring trends seen across Southern California. However, this vacancy creates opportunities for adaptive reuse, office-to-residential conversions, and value-add repositioning strategies that can be financed through bridge loans or hard money programs.
The retail market in Long Beach remains stable but uneven. Neighborhood retail corridors like 2nd Street in Belmont Shore continue to thrive, with average household incomes exceeding $158,000 within a one-mile radius and lease rates around $5.10 per square foot monthly. Grocery-anchored and service-based retail performs well, while big-box and discretionary retail faces ongoing pressure.
What Types of Commercial Loans Are Available in Long Beach?
Long Beach borrowers have access to the full spectrum of commercial real estate financing products. The optimal loan structure depends on your property type, investment strategy, financial profile, and timeline.
Conventional Commercial Mortgages are the standard financing tool for stabilized, income-producing properties across Long Beach. These loans typically offer fixed rates for 5, 7, or 10 years with 25 to 30 year amortization schedules. They work well for industrial buildings near the port, multifamily properties in Belmont Shore or Bixby Knolls, and retail centers with strong occupancy.
SBA Loans are designed for owner-occupied commercial properties and remain one of the most accessible entry points for small business owners in Long Beach. The SBA 7(a) program allows borrowers to finance up to 90% of the purchase price with down payments as low as 10%. SBA 504 loans provide long-term, fixed-rate financing for larger acquisitions. Long Beach's active small business community, spanning everything from port-related services to aerospace suppliers, makes SBA lending a major component of the local market.
Bridge Loans provide short-term capital for acquisitions, repositioning, or lease-up scenarios. In Long Beach's evolving market, bridge financing allows investors to close quickly on time-sensitive deals, particularly for downtown office conversions, industrial value-add projects near the I-710 corridor, or multifamily acquisitions that need renovation before qualifying for permanent financing.
DSCR Loans evaluate the property's income rather than the borrower's personal income, making them attractive for investors with complex tax returns or multiple properties. DSCR loan programs in Long Beach typically require a minimum debt service coverage ratio of 1.25x and down payments of 20% to 35%.
Hard Money Loans serve borrowers who need speed and flexibility above all else. These asset-based loans can close in days rather than weeks, making them useful for auction purchases, distressed acquisitions near the port or along the I-405 corridor, or properties that do not qualify for conventional underwriting.
Construction Loans fund ground-up development and major renovation projects. With Long Beach experiencing a wave of new development, including projects like Portico (a $150 million, 272-unit mixed-use development) and the Alexan West End (a $200 million residential project downtown), construction financing plays a critical role in the city's growth.
What Are Current Commercial Loan Rates in Long Beach?
As of February 2026, commercial mortgage rates in Long Beach start as low as 5.18% for the most qualified borrowers and stabilized assets. However, rates vary significantly based on loan program, property type, leverage, and borrower profile.
Conventional commercial mortgages for stabilized properties range from approximately 5.18% to 7.25%, depending on term length and loan-to-value ratio. SBA 7(a) loans carry rates in the 6.50% to 8.00% range, while SBA 504 loans offer fixed rates starting around 5.64% through the CDC debenture portion.
Bridge loans, which carry more risk due to their short-term nature and transitional collateral, typically range from 7.50% to 10.50%. Hard money loans command the highest rates, generally falling between 9.00% and 12.75%, reflecting the speed and flexibility they provide.
DSCR loans for investment properties in Long Beach currently range from 6.25% to 8.50%, with rates heavily influenced by the property's net operating income relative to debt service obligations. Industrial properties near the port and stabilized multifamily assets tend to receive the most competitive terms due to their strong cash flow profiles.
To estimate your monthly payments and debt service coverage, use our commercial mortgage calculator or DSCR calculator.
Which Long Beach Submarkets Offer the Best Commercial Investment Opportunities?
Long Beach's submarket dynamics create a diverse range of investment profiles. Each neighborhood carries distinct risk, return, and demand characteristics shaped by proximity to the port, transit access, and economic drivers.
Downtown Long Beach is undergoing significant transformation. While office vacancy remains elevated at around 31.6%, massive residential and mixed-use projects are reshaping the skyline. The Portico development, the Alexan West End, and the Downtown Shoreline Vision Plan, the first comprehensive reimagining of the coastline since the 1970s, signal a pivotal shift toward a more residential and entertainment-oriented downtown. Investors focused on adaptive reuse and residential conversion stand to benefit.
Douglas Park represents Long Beach's premier business park, developed on the former Douglas Aircraft Company manufacturing site. Spanning over 4 million square feet and home to nearly 30 companies, Douglas Park has become the center of Long Beach's aerospace renaissance. Anduril Industries is building a 1.1 million square foot facility for drone research and development, expected to support roughly 5,500 jobs at full build-out. Relativity Space, SpinLaunch, Wisk, and Nikon Advanced Manufacturing also call this area home.
Belmont Shore and Naples offer Long Beach's most affluent coastal retail and residential corridors. The 2nd Street shopping district features walkable retail with average household incomes above $158,000, and a recently renovated property there sold for $9.9 million in late 2025. The area's fully built-out nature means zero new supply, supporting premium rents and low vacancy.
Bixby Knolls is an established residential and commercial neighborhood along Atlantic Avenue, known for tree-lined streets, local boutiques, and a growing restaurant scene. The submarket provides solid multifamily and neighborhood retail investment opportunities with moderate entry points compared to coastal areas.
The Port and I-710 Corridor drives Long Beach's industrial economy. The Port of Long Beach's $1.8 billion Pier B rail facility expansion and its goal to double throughput to 20 million TEUs by 2050 ensure continued demand for logistics, warehouse, and distribution facilities in this corridor. Properties with proximity to the I-710 and I-405 interchange benefit from direct freeway access to the entire Southern California distribution network.
Westside and Wrigley neighborhoods offer value-add multifamily opportunities at lower entry points than the more established eastern neighborhoods. Proximity to the port and industrial employers provides a stable tenant base, while ongoing neighborhood investment creates appreciation potential.
How Does Long Beach's Port Economy Impact Commercial Lending?
The Port of Long Beach is the single most distinctive economic asset in the city and a primary driver of commercial lending activity. As the second busiest container port in the United States, handling approximately 9.9 million TEUs in 2025, the port generates a vast ecosystem of businesses that rely on commercial real estate financing.
Port-adjacent industrial properties are among the most actively financed asset types in Long Beach. Warehouses, distribution centers, cold storage facilities, and truck terminals serving the port's supply chain require specialized commercial mortgages and sometimes construction financing for build-to-suit projects. Lenders familiar with the logistics sector understand the lease structures, tenant credit profiles, and operational requirements unique to port-related properties.
The port's long-term expansion plans, including the $1.8 billion Pier B rail facility and the goal of doubling container volumes by 2050, provide a demand outlook that extends decades into the future. This long-term visibility gives lenders confidence in underwriting industrial properties throughout the I-710 corridor and surrounding areas.
For investors, port-driven industrial assets in Long Beach typically offer cap rates of approximately 5.5% to 6.5%, with strong rent growth potential as the port expands and available land becomes increasingly scarce. The combination of rising demand and constrained supply positions this submarket as one of the most compelling industrial investment stories in Southern California.
What Should Borrowers Know About the Long Beach Commercial Loan Process?
The commercial loan process in Long Beach follows a structured path from pre-qualification through closing. Understanding each stage helps borrowers prepare documentation, set realistic timelines, and avoid delays.
The first step is pre-qualification, where a lender evaluates the basic parameters of your transaction: property type, location, purchase price or refinance amount, and borrower financial profile. This initial assessment determines which loan programs are the best fit and provides a preliminary rate indication.
Next comes loan structuring, where the lender selects the optimal program based on your property and goals. For example, an owner-occupied aerospace manufacturing facility in Douglas Park might qualify for an SBA 504 loan, while a value-add multifamily property in Wrigley might be best served by a bridge loan followed by permanent financing.
The formal application and underwriting phase involves detailed document review: rent rolls, operating statements, tax returns, personal financial statements, and a third-party appraisal. Long Beach-specific factors such as environmental assessments (particularly for former industrial sites and properties near the port), seismic evaluations, and California-specific regulatory compliance may add steps to the underwriting process.
Upon approval, the lender issues a commitment letter outlining all terms and conditions. After legal review, title clearance, and satisfaction of any outstanding conditions, the loan proceeds to closing. Standard timelines range from 45 to 60 days for conventional loans, 60 to 90 days for SBA loans, and as little as 7 to 14 days for bridge and hard money loans.
Contact Clear House Lending to begin the pre-qualification process for your Long Beach commercial property.
How Does Long Beach Compare to Other Major Southern California Commercial Markets?
Long Beach occupies a unique position within the Southern California commercial real estate landscape. While smaller than Los Angeles proper, the city offers distinct advantages driven by its port infrastructure, aerospace cluster, and waterfront revitalization.
Long Beach's industrial market benefits from the second busiest port in the nation, a distinction shared with no other city in the LA metro except the neighboring Port of Los Angeles. This gives Long Beach industrial properties a competitive moat that inland markets like the Inland Empire cannot fully replicate, despite the latter's larger warehouse inventory.
Multifamily rents in Long Beach averaging approximately $2,650 per month represent a significant discount to Santa Monica ($3,800+), West Los Angeles ($3,500+), and even downtown Los Angeles ($2,900+), while offering comparable coastal quality of life. This relative affordability attracts renters priced out of more expensive Westside markets, sustaining strong occupancy.
The city's aerospace sector, led by Anduril's $1 billion expansion and a growing cluster of space and defense technology companies, provides high-wage employment that supports both commercial and residential demand. CSULB's pipeline of approximately 1,200 engineering graduates annually and $12.2 million in federal workforce development grants ensure this sector has the talent base to sustain long-term growth.
Long Beach Airport (LGB) provides convenient air access for business travelers, while the I-710, I-405, and I-605 freeways connect the city to the broader Southern California transportation network.
What Types of Properties Get Financed Most Often in Long Beach?
The distribution of commercial loan originations in Long Beach reflects the city's port-driven economy and evolving urban landscape.
Industrial Properties dominate commercial lending activity in Long Beach, driven by the port's supply chain and the aerospace cluster around Douglas Park. Warehouses, distribution facilities, manufacturing plants, and flex space near the I-710 corridor represent the largest share of originations.
Multifamily Properties account for a significant portion of lending volume. The city's combination of coastal location, transit access, university demand from CSULB, and relative affordability compared to Westside LA creates persistent rental demand. Both stabilized acquisitions and value-add renovations attract strong lender interest.
Mixed-Use Properties are increasingly prominent as downtown Long Beach transforms. Buildings combining ground-floor retail with upper-floor residential are a natural fit for the city's walkable urban corridors. The Portico and Alexan West End developments signal the direction of future mixed-use investment.
Retail financing centers on neighborhood corridors like 2nd Street in Belmont Shore, Atlantic Avenue in Bixby Knolls, and Broadway in downtown. Service-oriented and food-and-beverage tenants drive the strongest fundamentals.
Office lending remains selective, focused on well-located Class A assets and conversion opportunities. Downtown Long Beach's elevated vacancy creates both risk and opportunity for investors with the right strategy and financing structure.
If you are ready to explore financing for your Long Beach commercial property, reach out to Clear House Lending to discuss your options with an experienced loan advisor.
Frequently Asked Questions
What is the minimum down payment for a commercial loan in Long Beach?
The minimum down payment depends on the loan program. SBA 7(a) and SBA 504 loans allow down payments as low as 10% for owner-occupied commercial properties, making them the most accessible option for small business owners. Conventional commercial mortgages typically require 25% to 35% down, while DSCR loans for investment properties generally require 20% to 35%. Long Beach's property values, while lower than Westside LA, still mean even a 10% down payment can represent a substantial capital commitment, so early equity planning is essential.
How long does it take to close a commercial loan in Long Beach?
Closing timelines vary by loan type. Conventional commercial mortgages typically close in 45 to 60 days. SBA loans may take 60 to 90 days due to additional government underwriting requirements. Bridge loans and hard money loans can close in as little as 7 to 14 days, which is particularly valuable in Long Beach's competitive industrial market where well-located port-adjacent properties often receive multiple offers.
Are commercial loan rates in Long Beach different from the national average?
Commercial loan interest rates are primarily driven by national capital markets rather than local geography. A stabilized multifamily property in Belmont Shore will generally receive similar base rates as a comparable asset in other major metros. However, Long Beach's strong port-driven industrial demand and low multifamily vacancy can sometimes result in slightly more competitive spreads for prime assets. Conversely, the elevated downtown office vacancy may lead to higher rates or more conservative underwriting for office properties.
Can I finance an industrial property near the Port of Long Beach?
Yes, industrial properties near the Port of Long Beach are among the most actively financed asset types in the city. Lenders are familiar with the logistics sector's lease structures, tenant profiles, and operational requirements. Conventional commercial mortgages, SBA loans for owner-occupants, and construction financing for build-to-suit projects are all available. The port's record 9.9 million TEU volume in 2025 and long-term expansion plans provide confidence in the industrial sector's demand fundamentals.
What is the best loan type for a first-time commercial investor in Long Beach?
For first-time investors purchasing owner-occupied property, SBA loans offer the most accessible path with 10% down payments and competitive rates. For investors purchasing rental property, DSCR loans are often the best fit because they qualify based on property income rather than personal income. Use our DSCR calculator to estimate whether your target property meets minimum debt service coverage requirements before making an offer.
Do environmental concerns affect commercial lending in Long Beach?
Yes, environmental assessments are particularly important in Long Beach due to the city's industrial heritage and port proximity. Properties on or near former industrial sites, including the oil industry legacy that shaped much of the city's early development, may require Phase I and Phase II environmental site assessments. Waterfront properties may face additional coastal commission requirements. Lenders routinely require environmental reports as part of their underwriting process, and any contamination findings can affect loan terms, required remediation escrows, or property valuation.
Take the next step in your Long Beach commercial real estate journey. Contact Clear House Lending today for a free consultation and rate quote tailored to your specific property and investment strategy.