Long Beach commercial property owners face a critical refinancing environment in 2026. A substantial wave of commercial real estate loans originated during the low-rate environment of 2020 through 2022 are maturing, and borrowers must refinance at rates that are significantly higher than their original terms. At the same time, Long Beach's strong multifamily fundamentals (approximately 3.9% to 5.3% vacancy, $2,650 average rents), record port activity (9.9 million TEUs in 2025), and the aerospace boom at Douglas Park have created appreciation and equity in many properties that make refinancing both necessary and strategically valuable.
Clear House Lending provides commercial refinance loans throughout Long Beach, from rate-and-term refinances that lower monthly payments to cash-out refinances that unlock equity for new acquisitions, renovations, or portfolio expansion. This guide covers current refinance rates, strategies for different property types, the maturity wall challenge, and how to position your Long Beach property for the best possible refinance terms.
Need Financing for This Project?
Stop searching bank by bank. Get matched with 6,000+ vetted lenders competing for your deal.
Why Is 2026 a Critical Year for Commercial Refinancing in Long Beach?
The commercial real estate industry is facing what analysts call the "maturity wall," a concentration of loan maturities that require borrowers to refinance into a higher-rate environment. This challenge is particularly relevant in Long Beach because of the volume of commercial loans originated during the 2020 to 2022 period when rates were at historic lows.
Borrowers who locked in rates of 3.50% to 4.50% during that window now face refinance rates starting at approximately 5.18% for the most qualified borrowers and stabilized assets. For transitional properties or those with reduced occupancy, rates may be significantly higher. The rate differential creates payment shock: a property that was comfortably cash-flowing at a 3.75% rate may face tighter margins or even negative leverage at a 6.50% refinance rate.
However, Long Beach property owners also have advantages in this environment. The city's multifamily market has seen rents increase roughly 1% to 3% annually over recent years, which has expanded NOI and improved DSCR ratios. Industrial properties near the port have benefited from the port's record 2025 volume, supporting strong occupancy and rent stability. These improved fundamentals can partially offset the impact of higher rates by supporting higher property valuations and better loan terms.
What Types of Commercial Refinance Loans Are Available in Long Beach?
Long Beach property owners have access to several refinance options, each serving different strategic objectives.
Rate-and-Term Refinance replaces the existing loan with a new loan at current market rates, without extracting additional equity. This is the most common refinance type for borrowers whose existing loans are maturing. The goal is to secure the best available rate and terms, extend the loan term, and maintain stable cash flow. Rate-and-term refinances typically offer the most favorable rates and highest LTV ratios because they do not increase the property's total leverage.
Cash-Out Refinance replaces the existing loan with a larger loan, allowing the borrower to extract equity that has built up through appreciation, debt paydown, or property improvements. In Long Beach, where multifamily and industrial property values have generally increased over the past several years, cash-out refinancing can unlock significant capital for new acquisitions, renovations, or other investments. Cash-out refinances typically carry slightly higher rates (0.25% to 0.50% premium) and lower maximum LTV ratios than rate-and-term refinances.
Loan Consolidation Refinance combines multiple loans on a single property or across a portfolio into one consolidated loan, simplifying the debt structure and potentially reducing the blended interest rate. This strategy can be effective for Long Beach investors who accumulated multiple loans through sequential acquisitions or renovations.
Bridge-to-Permanent Refinance is the exit strategy for bridge loan borrowers who have completed their value-add plan. After renovating and stabilizing a Long Beach property, the borrower refinances from a bridge loan at 7.50% to 10.50% into a permanent loan at rates as low as 5.18% to 5.30%. This rate reduction dramatically improves cash flow and represents the payoff for executing a successful value-add strategy.
SBA Refinance allows borrowers to refinance existing commercial loans into SBA 504 or SBA 7(a) programs, potentially lowering rates and accessing more favorable terms. The SBA 504 program is particularly attractive for owner-occupied properties in Long Beach, offering fixed rates starting around 5.64% with up to 90% LTV.
What Are Current Commercial Refinance Rates in Long Beach?
Refinance rates in Long Beach as of February 2026 vary by property type, loan program, leverage, and borrower qualifications.
Conventional commercial refinance rates range from approximately 5.18% to 7.25% for stabilized properties. The most competitive rates are available for multifamily properties with strong occupancy and port-area industrial properties with long-term NNN leases. Long Beach's tight multifamily vacancy of 3.9% to 5.3% and the port's record cargo volumes support favorable underwriting for these property types.
Agency refinance rates through Fannie Mae and Freddie Mac for multifamily properties (5+ units) start at approximately 5.30% for seven to ten year fixed terms. Agency programs offer up to 80% LTV, 30-year amortization, and some of the most competitive terms in the market for qualifying properties.
SBA 504 refinance rates start around 5.64% for the CDC debenture portion, making this program one of the most cost-effective refinance options for owner-occupied commercial properties in Long Beach. SBA 7(a) refinance rates range from 6.50% to 8.00%.
DSCR refinance loans range from 6.25% to 8.50%, qualifying based on property income rather than personal income. This is an attractive option for investors refinancing investment properties without the documentation requirements of conventional loans.
Bridge loan refinances, used when a property does not yet qualify for permanent financing, range from 7.50% to 10.50%.
To compare monthly payments at different rates and terms, use our commercial mortgage calculator.
How Do You Determine Whether Refinancing Makes Sense for Your Long Beach Property?
The decision to refinance involves evaluating several factors specific to your property, current loan terms, and investment objectives.
Current Rate vs. Market Rate: If your existing rate is below current market rates, refinancing to a higher rate only makes sense if you have a specific strategic reason, such as extracting equity, extending the term to avoid balloon payment, or consolidating debt. If your current rate is above market, a rate-and-term refinance can immediately improve cash flow.
Loan Maturity Timeline: If your current loan is maturing within the next 12 to 24 months, refinancing is not optional but necessary. Starting the refinance process 6 to 12 months before maturity gives you adequate time to shop terms, prepare documentation, and avoid the pressure of a deadline that could force unfavorable terms.
Property Value Appreciation: Long Beach properties in strong sectors have generally appreciated since 2020. If your industrial property near the port has increased in value due to strong demand and rent growth, you may have significant equity available for a cash-out refinance. Similarly, multifamily properties in areas like Belmont Shore, Bixby Knolls, and downtown have benefited from Long Beach's tight vacancy and rising rents.
DSCR Improvement: If your property's NOI has increased since the original loan was placed, whether through rent increases, expense reductions, or improved occupancy, the higher DSCR may qualify you for better terms, higher leverage, or lower rates on the refinance.
Prepayment Penalty Analysis: Many commercial loans carry prepayment penalties such as yield maintenance, defeasance, or step-down percentages. Calculate the total cost of the prepayment penalty against the savings from the new loan to determine whether early refinancing makes economic sense.
Which Long Beach Properties Are Best Positioned for Refinancing in 2026?
Property type and submarket fundamentals significantly affect refinance terms and outcomes in Long Beach.
Stabilized Multifamily Properties in Belmont Shore, Bixby Knolls, downtown, and east Long Beach are the strongest refinance candidates. The combination of approximately 3.9% to 5.3% vacancy, average rents of $2,650, and consistent rent growth produces DSCR ratios that comfortably exceed lender minimums. Agency refinance rates starting at 5.30% offer the most competitive terms. Properties that have been held since before 2022 have likely appreciated, supporting cash-out refinance if desired.
Industrial Properties Near the Port benefit from the Port of Long Beach's record 2025 cargo volumes and the $1.8 billion Pier B expansion investment. Stabilized warehouses and distribution facilities with long-term NNN leases to credit tenants qualify for conventional refinance rates at the lower end of the 5.18% to 7.00% range. The port's stated goal of doubling throughput to 20 million TEUs by 2050 provides long-term demand confidence that lenders value.
Aerospace-Tenant Properties at Douglas Park are well positioned for refinancing due to the sector's growth trajectory. Anduril's $1 billion campus, Boeing's retained operations, and the broader "Space Beach" cluster create premium tenant demand that supports favorable terms.
Mixed-Use Properties on Strong Corridors (Belmont Shore, Retro Row, Bixby Knolls) with both residential and commercial components performing well are solid refinance candidates, particularly for SBA programs if the borrower is an owner-occupant.
Downtown Office Properties face the most challenging refinance environment due to the approximately 31.6% vacancy rate. Borrowers with office properties that have maintained strong occupancy may still access competitive terms, but those with significant vacancy may need to consider bridge refinancing, loan modifications, or recapitalization strategies rather than traditional refinancing.
What Documentation Is Needed for a Commercial Refinance in Long Beach?
Preparing a complete documentation package before approaching lenders accelerates the refinance process and demonstrates professionalism that can influence terms.
The standard documentation package for a Long Beach commercial refinance includes current rent rolls showing all tenants, lease terms, and rental rates; trailing 12-month operating statements showing income and expenses; current year-to-date operating statements; copies of all tenant leases; the existing loan statement showing current balance, rate, maturity date, and any prepayment provisions; property tax bills (important for Proposition 13 analysis); insurance declarations; borrower personal financial statement and tax returns (for conventional loans, though not required for DSCR); and the original appraisal and any subsequent valuations.
For Long Beach properties specifically, environmental clearances from the original acquisition (Phase I ESA), seismic assessments for older buildings, and documentation of any capital improvements made since the property was acquired can support a higher appraised value on the refinance.
What Is the Refinance Process Timeline for Long Beach Properties?
The refinance timeline depends on the loan program and property complexity, but follows a predictable structure.
Conventional refinances typically close in 45 to 60 days from application. The process begins with lender selection and preliminary pricing (1 to 2 weeks), followed by formal application and document submission (1 week), appraisal (2 to 3 weeks), underwriting review (2 to 3 weeks), and closing (1 to 2 weeks).
Agency refinances through Fannie Mae and Freddie Mac follow a similar timeline, with the potential for slightly longer processing due to the agencies' standardized underwriting requirements.
SBA refinances take 60 to 90 days due to additional government underwriting layers. However, the SBA's competitive rates and favorable terms often justify the longer timeline for qualifying borrowers.
DSCR refinances can be slightly faster than conventional, typically 30 to 45 days, because the reduced documentation requirements (no personal income verification) streamline the underwriting process.
Bridge refinances offer the fastest timeline at 14 to 21 days, useful for borrowers facing imminent loan maturity or needing to move quickly for other reasons.
Starting the refinance process 6 to 12 months before your current loan matures provides adequate time to shop multiple lenders, negotiate terms, and avoid the pressure of a deadline.
How Does Refinancing in Long Beach Compare to Other Southern California Markets?
Long Beach property owners benefit from several market-specific advantages when refinancing compared to other Southern California markets.
Long Beach's multifamily fundamentals, with approximately 3.9% to 5.3% vacancy and rents that have grown steadily, produce strong DSCR profiles that support favorable refinance terms. Compared to markets with higher vacancy (downtown LA at approximately 6%, Inland Empire at 5.8%), Long Beach multifamily properties typically qualify for lower rates and higher LTV ratios.
The port-driven industrial market provides a refinance advantage unique to Long Beach. Industrial properties near the Port of Long Beach have a demand backstop that inland and non-port markets cannot replicate. Lenders view these properties favorably, often offering competitive rates and terms that reflect the port's long-term growth trajectory.
Long Beach's relative affordability compared to Westside LA markets means loan amounts are smaller, which can simplify the refinance process and open up lender options that may not be available for larger, more expensive assets in Santa Monica or Beverly Hills.
The city's diversified economy, spanning the port, aerospace, healthcare (Long Beach Memorial, VA Long Beach), education (CSULB), and tourism, provides economic resilience that lenders value when underwriting refinance loans.
Frequently Asked Questions
When should I start the refinance process for my Long Beach commercial property?
Start the refinance process 6 to 12 months before your current loan matures. This timeline allows adequate time to evaluate market conditions, shop multiple lenders, prepare documentation, complete the appraisal, and close without deadline pressure. If you are considering a cash-out refinance to fund new acquisitions or improvements, earlier planning gives you more flexibility to time the refinance with your investment strategy.
Can I refinance a commercial property in Long Beach with no personal income verification?
Yes, DSCR refinance loans qualify based on the property's income rather than the borrower's personal income. If your Long Beach property generates a DSCR of 1.25x or higher, you can refinance without providing tax returns, W-2s, or other personal income documentation. This is particularly attractive for self-employed investors, those with multiple properties, and out-of-state owners. Use our DSCR calculator to evaluate your property's qualification.
How much equity can I extract in a cash-out refinance?
Cash-out refinance programs typically allow LTV ratios of 65% to 75%, meaning you can borrow up to 65% to 75% of the property's current appraised value. If your Long Beach property is worth $3 million and your current loan balance is $1.5 million, you could potentially access $750,000 to $1.25 million in equity through a cash-out refinance (depending on the LTV). The extracted equity can be used for new acquisitions, renovations, or other investments with no restrictions.
What happens if my Long Beach office property does not qualify for conventional refinancing?
If your office property's vacancy or income levels do not meet conventional lender requirements, several alternatives exist. A bridge refinance at 7.50% to 10.50% provides a short-term solution while you improve occupancy. A hard money loan can prevent maturity default while you arrange longer-term financing. Loan modification or extension with your current lender may be possible. In some cases, selling the property and redeploying capital into a stronger asset class may be the most strategic option, particularly given downtown Long Beach's 31.6% office vacancy.
Does Proposition 13 affect my refinance in Long Beach?
Proposition 13 does not directly trigger a property tax reassessment upon refinancing, only upon a change of ownership or new construction. This means you can refinance without worrying about a tax increase. However, lenders will use the current assessed value and tax rate when calculating your DSCR, so make sure the property tax figure in your operating statements is current and accurate.
Can I refinance an SBA loan on my Long Beach property?
Yes, SBA loans can be refinanced into new SBA programs or conventional financing. If you have an SBA 7(a) loan with a higher variable rate, refinancing into an SBA 504 program with a fixed rate starting around 5.64% can reduce your monthly payments. You can also refinance out of an SBA program into conventional or DSCR financing if that better suits your current situation. The key is comparing the total cost of the new loan (including any prepayment penalties on the existing SBA loan) against the savings from improved terms.
Contact Clear House Lending today to discuss refinance options for your Long Beach commercial property. Our team can provide a preliminary rate quote, evaluate your current loan terms, and help you execute the optimal refinance strategy for your investment goals.