Why Are Mesa Property Owners Refinancing in 2026?
Mesa's commercial property owners are finding that the current lending environment, combined with the city's strong market fundamentals, creates favorable conditions for refinancing. Property values have increased across industrial, multifamily, retail, and mixed-use sectors, driven by the explosive growth around Phoenix-Mesa Gateway Airport, billions in data center investment along the Elliot Road Technology Corridor, and steady employment gains from Boeing, Apple, ASU, and the broader technology sector. For borrowers seeking commercial refinance loans in Mesa, these conditions translate to opportunities for rate reduction, cash-out equity, and improved loan structures.
Arizona commercial mortgage rates start as low as approximately 5.11% for the most qualified borrowers and properties, and Mesa apartment loan rates begin near 5.23%. These rates represent a meaningful improvement for owners holding loans originated during the higher-rate period of 2022 through 2024. A rate reduction of even 1.0% to 1.5% on a $2 million Mesa commercial property translates to roughly $20,000 to $30,000 in annual interest savings.
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Mesa's property appreciation has also created substantial equity for owners who purchased or developed in the past several years. Industrial properties near Gateway Airport have seen particularly strong value growth, driven by institutional demand from companies like Amazon, Nippon Express, and DSV. Multifamily properties throughout Mesa have appreciated alongside rising rents and in-migration. Retail properties anchored by service and experience-driven tenants have outperformed expectations. This equity growth creates cash-out refinancing opportunities that owners can use for property improvements, additional acquisitions, or debt reduction on other assets.
Clear House Lending connects Mesa property owners with a network of over 6,000 commercial lenders offering competitive refinance programs for industrial, multifamily, office, retail, and mixed-use properties throughout Maricopa County.
What Commercial Refinance Programs Are Available in Mesa?
Mesa's commercial refinance market offers multiple programs suited to different property types, owner objectives, and equity positions. Understanding the available options helps borrowers select the program that best serves their financial goals.
Conventional Bank Refinance is the most common program for Mesa commercial properties with stable income and strong borrower credit. Banks offer rates between approximately 5.5% and 7.0%, with 5 to 10 year terms, 20 to 25 year amortization, and LTV up to 75% for rate-and-term refinance or 70% for cash-out. Arizona community and regional banks with Mesa market expertise offer particularly competitive terms.
CMBS (Conduit) Refinance provides non-recourse permanent financing for Mesa commercial properties valued at $2 million or more. Rates range from 5.5% to 7.0% with 5 to 10 year terms and 25 to 30 year amortization. The non-recourse structure makes CMBS refinancing attractive for investors seeking to limit personal liability, particularly for larger industrial and retail properties.
Agency Refinance (Fannie Mae / Freddie Mac) serves Mesa multifamily properties with 5 or more units. Agency programs offer the most competitive rates in the market (starting around 5.0% to 6.0%), non-recourse structures, and terms up to 35 years with full amortization. These programs provide the lowest-cost refinancing for qualifying Mesa apartment properties.
SBA Refinance allows owner-occupants to refinance existing debt on their Mesa commercial property through the SBA 504 or 7(a) programs. The SBA 504 program offers fixed rates starting near 5.5% with up to 25-year terms and up to 90% LTV, making it an excellent option for business owners seeking to reduce their monthly payment or pull equity for business expansion.
DSCR Refinance programs qualify borrowers based on the property's rental income rather than personal income documentation. Rates range from 6.5% to 9.0% with LTV up to 75% for rate-and-term and 70% for cash-out. These programs are ideal for self-employed Mesa investors, foreign nationals, and portfolio builders. Use the DSCR calculator to determine your property's qualification.
Bridge-to-Permanent Refinance transitions properties currently financed with bridge or hard money loans into lower-cost permanent debt. This is a common Mesa refinancing scenario for investors who used bridge financing to acquire and stabilize a property and are now ready for long-term financing.
When Does Refinancing Make Financial Sense for Mesa Properties?
Not every Mesa commercial property should be refinanced. Understanding the financial triggers that make refinancing worthwhile helps property owners make informed decisions.
Rate reduction of 0.75% or more generally justifies the closing costs of a Mesa commercial refinance. Closing costs typically range from 1.0% to 3.0% of the loan amount, including origination fees, appraisal, title insurance, legal fees, and third-party reports. A rate reduction of 0.75% or more typically recovers these costs within 12 to 24 months, making the refinance financially accretive for the remaining loan term.
Loan maturity within 6 to 12 months creates a mandatory refinancing event. Mesa property owners with loans maturing in the near term should begin the refinancing process early to ensure adequate time for underwriting, appraisal, and closing. Starting 6 months before maturity provides ample runway.
Property value appreciation creating significant new equity may justify a cash-out refinance. Mesa industrial properties near Gateway Airport, multifamily assets in growth corridors, and retail properties in Eastmark and Riverview have seen meaningful appreciation. Cash-out proceeds can fund property improvements, additional acquisitions, or portfolio rebalancing.
Bridge or hard money loan conversion is a natural refinancing trigger. Mesa investors who used short-term financing to acquire and stabilize properties should transition to permanent debt as soon as the property qualifies, typically when occupancy reaches 85% or higher and the DSCR exceeds 1.25x.
Loan structure improvement may justify refinancing even without a significant rate reduction. Converting from a variable rate to a fixed rate provides payment certainty. Extending the amortization period reduces monthly payments. Switching from a recourse to a non-recourse structure limits personal liability. Removing a personal guarantee or co-borrower simplifies the liability structure.
Which Mesa Property Types Benefit Most from Refinancing?
Different commercial property types in Mesa present distinct refinancing opportunities based on their market performance and available lending programs.
Industrial Properties near Gateway Airport, Falcon Field, and along Loop 202 are Mesa's strongest refinancing candidates. Industrial assets have seen the most significant appreciation and the strongest rent growth, creating substantial equity for cash-out refinancing. Lenders offer the most competitive industrial refinance rates due to the sector's low vacancy and strong institutional demand. Arizona commercial mortgage rates start as low as 5.11% for premium industrial assets.
Multifamily Properties throughout Mesa benefit from agency refinancing programs (Fannie Mae, Freddie Mac) that offer the lowest rates and longest terms in the market. Mesa's strong population growth, rising rents, and low apartment vacancy support aggressive underwriting from agency lenders. Apartment owners holding bank loans at higher rates can achieve meaningful savings by refinancing into agency programs.
Retail Properties in Mesa's strongest corridors, including Riverview, Eastmark, and Superstition Springs, qualify for competitive refinancing terms. Grocery-anchored centers and single-tenant NNN properties with credit tenants receive the best treatment. Service-oriented retail centers with strong occupancy are finding favorable refinancing conditions as lenders gain confidence in the resilient retail format.
Office Properties in Mesa present selective refinancing opportunities. Properties in the Elliot Road Technology Corridor and near Falcon Field's aerospace cluster with strong occupancy and quality tenants qualify for competitive terms. Medical office properties are particularly attractive refinancing candidates due to the healthcare sector's stability.
Mixed-Use Properties near Downtown Mesa's light rail corridor and in Eastmark can refinance into permanent debt once stabilized. Properties with strong residential occupancy and established commercial tenants qualify for conventional bank or CMBS refinancing.
How Do Lenders Underwrite Mesa Commercial Refinances?
Refinance underwriting in Mesa evaluates the property's current performance, market position, and the borrower's financial strength. Understanding these criteria helps property owners prepare effective refinance applications.
DSCR Analysis is the primary underwriting metric for Mesa commercial refinances. Lenders calculate the property's net operating income divided by the proposed annual debt service. Minimum DSCR requirements range from 1.20x to 1.40x depending on the property type and loan program. Industrial and multifamily properties with strong DSCR ratios access the best refinancing terms.
LTV Evaluation determines the maximum loan amount available. Rate-and-term refinances in Mesa typically qualify for LTV up to 75%, while cash-out refinances cap at 65% to 70%. The LTV is based on a current appraisal, which for Mesa properties should reflect recent market appreciation, particularly for industrial and multifamily assets.
Property Condition Assessment evaluates the physical condition and remaining useful life of major building systems. Lenders require a Property Condition Report (PCR) that identifies deferred maintenance and estimates replacement costs. Mesa's desert climate creates specific considerations including roof condition (UV exposure), HVAC system capacity (extreme heat), and structural integrity in areas with expansive soils.
Borrower Financial Review examines the owner's overall financial strength, including personal net worth, liquidity, and experience. DSCR refinance programs minimize this review by focusing on property income, while conventional bank refinances require full borrower financial documentation.
Market Rent and Occupancy Analysis ensures the property's income is sustainable. Lenders compare the property's current rents to market rates for comparable Mesa properties and evaluate occupancy relative to the submarket. Properties with above-market rents or declining occupancy may face additional scrutiny or lower leverage.
What Are Current Refinance Rates for Mesa Commercial Properties?
Refinance rates for Mesa commercial properties reflect both the broader interest rate environment and the specific risk profile of each property type.
The most competitive rates in Mesa are available for multifamily refinances through agency programs (Fannie Mae, Freddie Mac), starting around 5.0% to 6.0% with non-recourse terms and amortization up to 35 years. These programs represent the lowest-cost refinancing available for qualifying Mesa apartment properties with 5 or more units.
Conventional bank refinance rates for Mesa commercial properties range from approximately 5.5% to 7.0%, with industrial properties at the low end and office properties at the higher end. The rate spread reflects lenders' relative risk perception across property types, with industrial viewed as lowest risk and office as highest in the current market.
CMBS refinance rates range from 5.5% to 7.0% with non-recourse structures. CMBS refinancing is most attractive for larger Mesa properties ($2 million or more) where the non-recourse benefit justifies the slightly higher rates and more rigid loan structures.
DSCR refinance rates range from 6.5% to 9.0%, with the premium reflecting the reduced documentation requirements and the property-income-only qualification approach. Mesa investors with strong properties but complex personal income situations (self-employment, multiple entities, foreign income) find DSCR refinancing especially valuable.
SBA 504 refinance rates for owner-occupied Mesa properties offer fixed rates starting near 5.5% with up to 25-year terms. The SBA program provides exceptional terms for business owners who can demonstrate that their business occupies at least 51% of the property.
Use the commercial mortgage calculator to compare refinancing scenarios for your Mesa property.
What Is the Cash-Out Refinance Process for Mesa Properties?
Cash-out refinancing allows Mesa property owners to access equity that has accumulated through appreciation, debt paydown, or property improvements. Understanding the process and limitations helps owners plan effective cash-out strategies.
Cash-out refinancing in Mesa typically allows LTV up to 65% to 70%, compared to 75% for rate-and-term refinance. The maximum cash-out amount is determined by the current appraised value minus the existing loan balance, up to the LTV limit.
For example, a Mesa industrial property appraised at $3 million with an existing loan balance of $1.5 million could qualify for a cash-out refinance loan of up to $2.1 million (70% LTV), providing approximately $600,000 in cash-out proceeds after paying off the existing loan and closing costs.
Lenders may apply a slight rate premium for cash-out refinances compared to rate-and-term refinances, typically 0.125% to 0.25%. The DSCR must support the higher loan amount, so borrowers should confirm that the property's NOI provides adequate coverage at the increased debt service level.
Common uses of Mesa cash-out refinance proceeds include funding property improvements to increase NOI and value, acquiring additional investment properties, funding tenant improvements to attract higher-quality tenants, paying down other higher-cost debt, and investing in business operations (for owner-occupied properties).
The cash-out refinance process takes approximately 45 to 90 days for conventional bank loans and 60 to 90 days for CMBS. Having a current rent roll, T-12 operating statement, and property condition information ready at application expedites the process.
What Are Common Refinancing Mistakes Mesa Property Owners Make?
Avoiding common refinancing pitfalls helps Mesa property owners maximize the financial benefit of their refinance and prevent costly errors.
Waiting too long to start is the most common mistake. Mesa property owners with loans maturing in 3 to 6 months may find themselves under time pressure that limits their ability to shop for the best terms. Starting the refinance process 6 to 9 months before maturity or desired closing date provides optimal results.
Ignoring prepayment penalties on the existing loan can create unexpected costs. Many Mesa commercial loans include defeasance, yield maintenance, or declining prepayment penalties that must be factored into the refinancing analysis. In some cases, the prepayment penalty exceeds the present value of the interest savings, making the refinance uneconomical until the penalty period expires.
Overestimating property value leads to disappointment when the appraisal comes in below expectations. Mesa property owners should obtain a preliminary broker opinion of value (BOV) before committing to a refinance application. This is particularly important for office properties where Mesa's elevated vacancy may affect valuations.
Under-documenting property income slows the underwriting process and may result in less favorable terms. Mesa property owners should prepare complete rent rolls, lease abstracts, T-12 operating statements, and tax returns before applying. Missing documentation is the most common cause of refinancing delays.
Failing to compare multiple lenders leaves potential savings on the table. Mesa's commercial lending market includes local banks, regional banks, national banks, CMBS conduits, life insurance companies, and specialty lenders, each with different rate structures and appetites. Clear House Lending's network of over 6,000 lenders ensures comprehensive market coverage.
Not considering total cost of ownership beyond the interest rate can lead to suboptimal decisions. Closing costs, ongoing fees, reserve requirements, prepayment flexibility, and reporting obligations all affect the total cost of the refinanced loan. The lowest-rate option is not always the best overall value.
How Should Mesa Property Owners Prepare for Refinancing?
Strategic preparation significantly impacts the terms available for Mesa commercial refinances. Following these steps helps property owners present the strongest possible application.
Begin by assembling a complete property financial package including the current rent roll with all tenant information, a trailing 12-month (T-12) operating statement showing actual income and expenses, copies of all current leases, the most recent property tax assessment, and current insurance policies.
Obtain a preliminary property valuation through a broker opinion of value or a review of recent comparable sales in your Mesa submarket. This helps set realistic expectations for the refinance loan amount and identifies whether a cash-out refinance is feasible.
Review your existing loan documents to identify any prepayment penalties, lock-out periods, or other restrictions that would affect the timing or cost of refinancing. CMBS loans typically require defeasance, which can be costly but is calculable in advance.
Address any deferred maintenance or property condition issues that could negatively impact the appraisal or property condition report. Minor improvements to Mesa properties, such as fresh paint, landscaping upgrades, or parking lot resurfacing, can positively influence the appraiser's assessment and potentially increase the appraised value.
Engage Clear House Lending early in the process. Starting the lender matching process while you prepare your documentation allows the simultaneous pursuit of the best available terms from multiple lenders.
What Is the Outlook for Mesa Commercial Refinancing?
The refinancing outlook for Mesa commercial properties is favorable, supported by improving interest rate conditions and strong market fundamentals.
Interest rate stabilization is creating a more predictable refinancing environment. Borrowers who originated loans during the 2022-2024 rate peak are finding that current rates offer meaningful savings. As rates potentially continue to ease, additional refinancing opportunities will emerge.
Mesa's property values continue to benefit from the city's economic growth drivers. Boeing's expanding aerospace operations at Falcon Field, Google's $600 million data center, Meta's roughly $1 billion facility, Apple's Global Command Center, and ASU's $250 million Polytechnic Innovation Zone investment are creating employment and commercial demand that supports property values across all sectors.
The industrial sector in Mesa continues to see strong value appreciation, creating refinancing and cash-out opportunities for warehouse and distribution property owners near Gateway Airport. Multifamily values are supported by Mesa's population growth and rental demand. Retail values are improving as the sector demonstrates resilience through service and experience-driven formats.
Lender competition for Mesa commercial refinances is healthy, with banks, CMBS conduits, agency lenders, and specialty programs all actively seeking Mesa commercial mortgage business. This competition benefits borrowers through more competitive rates, higher leverage, and more flexible terms.
Contact Clear House Lending today to explore refinancing options for your Mesa commercial property.
Frequently Asked Questions About Commercial Refinancing in Mesa
How much does it cost to refinance a Mesa commercial property?
Refinancing costs for Mesa commercial properties typically range from 1.0% to 3.0% of the loan amount. Costs include origination fees (0% to 1.0%), appraisal ($3,000 to $7,000), Phase I environmental ($2,500 to $4,000 if required), title insurance, legal fees, recording fees, and third-party reports. Some lenders offer no-origination-fee refinancing at slightly higher rates. SBA 504 refinances include additional SBA guarantee fees of approximately 3%.
Can I refinance a Mesa property that is not fully leased?
Yes, though occupancy below 80% limits your refinancing options. Conventional bank refinances typically require 75% to 85% occupancy. DSCR programs may be more flexible, and some lenders underwrite to market rent rather than in-place rent for properties with below-market occupancy. Bridge refinancing is available for properties that need additional stabilization time.
How long does a Mesa commercial refinance take?
Refinance timelines vary by program. Conventional bank refinances take 45 to 75 days. CMBS refinances require 60 to 90 days. Agency multifamily refinances (Fannie/Freddie) take 45 to 90 days. DSCR refinances close in 21 to 45 days. SBA 504 refinances take 60 to 120 days. Having complete documentation ready at application can shorten timelines by 1 to 3 weeks.
Can I do a cash-out refinance on a Mesa investment property?
Yes. Most Mesa commercial lending programs allow cash-out refinancing at LTV ratios of 65% to 70%, compared to 75% for rate-and-term refinance. The property must have sufficient equity based on a current appraisal, and the NOI must support the higher debt service at the increased loan amount. Cash-out proceeds can be used for property improvements, additional acquisitions, or business purposes.
What happens when my Mesa commercial loan matures?
When your commercial loan matures, you must either pay off the remaining balance (through sale or new financing) or refinance into a new loan. Starting the refinance process 6 to 9 months before maturity provides adequate time to secure optimal terms. If you cannot refinance before maturity, some lenders offer short-term extensions while the new financing is arranged, though extension fees apply.
Should I refinance my Mesa property from a variable rate to a fixed rate?
Converting from variable to fixed rate provides payment certainty and protects against future rate increases. This is particularly valuable for Mesa properties held as long-term investments. The decision depends on your hold period, current rate, and rate outlook. If your variable rate is below available fixed rates, you may benefit from waiting. However, fixing the rate eliminates the uncertainty that can affect your property's DSCR and your financial planning. Use the commercial mortgage calculator to compare scenarios.
Optimizing Your Mesa Commercial Property Financing Through Refinancing
Refinancing is one of the most powerful financial tools available to Mesa commercial property owners. Whether you are seeking to reduce your interest rate on an industrial property near Gateway Airport, extract equity from an appreciated multifamily asset, transition from a bridge loan to permanent financing on a Downtown mixed-use project, or restructure debt on a retail center near Riverview, the right refinance program can significantly improve your property's financial performance.
Contact Clear House Lending today to discuss refinancing options for your Mesa commercial property and get connected with lenders offering the most competitive terms in the market.