Why Is 2026 a Critical Year for Miami Commercial Refinancing?
Miami's commercial real estate owners face a convergence of factors that make 2026 one of the most important refinancing windows in recent memory. An estimated $936 billion in commercial mortgages will mature nationally in 2026, and Miami-Dade County's share of this maturity wave includes thousands of multifamily, office, retail, industrial, and mixed-use properties. For owners whose existing loans are approaching maturity, proactive refinancing is essential to securing competitive terms and avoiding the pressures of last-minute financing.
The interest rate environment has stabilized heading into 2026, creating a more predictable lending landscape. The prime rate settled at 6.75% as of December 2025, and Florida commercial mortgage rates start as low as 5.17%. Loan originations nationally rose 36% year-over-year in Q3 2025, signaling that capital availability has improved significantly from the constrained environment of 2023 and 2024. Alternative lenders, including debt funds and mortgage REITs, captured 37% of non-agency closings in 2025, giving Miami borrowers more refinancing options than at any time in the past three years.
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Miami-specific factors create additional refinancing urgency and opportunity. Property values in premium submarkets like Brickell, Wynwood, and Coral Gables have appreciated significantly, creating equity that owners can access through cash-out refinancing. The migration of financial firms and technology companies from New York has strengthened office fundamentals, improving underwriting metrics for office property owners. Industrial vacancy remains tight in Doral and Medley, supporting aggressive refinancing terms for warehouse and logistics properties. And multifamily owners are positioned to refinance at attractive terms as the supply pipeline contracts and rental fundamentals improve.
However, Miami's elevated insurance costs, including flood and windstorm premiums, create a refinancing challenge that owners must proactively manage. Properties whose insurance costs have increased significantly since the original loan may find that their DSCR has compressed, potentially limiting refinancing options. Understanding how to structure refinancing around Miami's insurance environment is critical.
For borrowers exploring refinancing options, Clear House Lending connects Miami property owners with a network of over 6,000 commercial lenders to find the most competitive refinance rates and terms.
What Commercial Refinance Programs Are Available in Miami?
Miami property owners have access to a full spectrum of refinancing programs, each suited to different property types, ownership objectives, and financial profiles.
Conventional Rate-and-Term Refinancing replaces an existing mortgage with a new loan at current market rates and terms, without extracting additional equity. This is the most common refinancing objective for Miami property owners whose original loans are maturing or whose existing rates are above current market levels. Conventional refinance rates range from 5.5% to 7.5% with LTV up to 75% and 20 to 25 year amortization.
Cash-Out Refinancing allows Miami property owners to borrow against appreciated equity, receiving cash proceeds above the existing loan balance. Most lenders allow cash-out up to 70% to 75% of current appraised value. Cash-out proceeds can fund renovations, new acquisitions, business purposes, or debt consolidation. Miami's strong property value appreciation across most submarkets means many owners have significant equity available to extract.
Agency Refinancing (Fannie Mae/Freddie Mac) offers the most competitive terms for Miami multifamily properties with 5+ units. Agency refinance rates range from 5.25% to 6.50% with LTV up to 80% (75% for cash-out), 30 to 35 year terms, and non-recourse structures. The streamlined underwriting process and competitive pricing make agency refinancing the preferred option for stabilized apartment communities.
CMBS Refinancing provides non-recourse permanent financing for stabilized commercial properties of all types. Rates range from 5.75% to 7.25% with 5 to 10 year terms. CMBS refinancing is popular for Miami office, retail, and mixed-use properties where the non-recourse structure and standardized terms are attractive. Defeasance or yield maintenance provisions from existing CMBS loans must be evaluated when considering refinancing.
SBA 504 Refinancing allows owner-occupants to refinance existing commercial mortgages at favorable terms. SBA 504 refinance loans offer fixed rates around 6.0%, LTV up to 90%, and 25-year terms. This program is particularly valuable for Miami business owners whose original loans were taken at higher rates or who want to consolidate multiple debts into a single, long-term fixed-rate loan.
DSCR Refinancing qualifies borrowers based on property cash flow without income documentation. Rates range from 7.0% to 9.5% with LTV up to 75% to 80%. DSCR refinancing is popular among Miami investors whose tax returns do not reflect their true financial capacity, international property owners, and self-employed individuals managing rental portfolios.
Bridge-to-Permanent Refinancing serves borrowers transitioning from short-term bridge loans to long-term permanent financing after completing a value-add strategy. This refinancing pathway is critical for Miami investors who used bridge financing for property acquisitions or renovations and are now ready to lock in permanent terms.
When Should Miami Property Owners Refinance?
Timing is critical for commercial refinancing. Several triggers should prompt Miami property owners to evaluate their refinancing options.
Loan maturity within 12 to 18 months is the most common refinancing trigger. Miami property owners should begin the refinancing process at least 6 to 12 months before their existing loan matures to ensure adequate time for underwriting, appraisal, and closing. Waiting until the final months creates urgency that reduces negotiating leverage and may result in accepting less favorable terms.
Rate improvement opportunity exists when current market rates are meaningfully below the rate on the existing loan. Even a 50 to 100 basis point rate reduction on a large Miami commercial mortgage can save tens of thousands of dollars annually. With Florida commercial rates starting at 5.17%, owners paying 7%+ should evaluate refinancing economics.
Property value appreciation creates cash-out refinancing opportunities. Miami properties in Brickell, Wynwood, Edgewater, and Doral have experienced significant appreciation over the past several years. Owners who purchased or last refinanced at lower valuations can access this equity through cash-out refinancing to fund renovations, new acquisitions, or business purposes.
Completion of value-add strategy triggers refinancing from bridge loans to permanent financing. Miami investors who acquired and renovated properties using bridge financing (9% to 13% rates) can save 300 to 700 basis points by refinancing into permanent loans (5.25% to 7.5%) once the property is stabilized.
Insurance cost changes may warrant refinancing if premiums have decreased due to wind mitigation improvements or if higher premiums have compressed DSCR below the existing loan's covenants. Refinancing into a loan with different DSCR thresholds or an interest-only period can relieve cash flow pressure caused by insurance cost increases.
Ownership restructuring, including partnership changes, estate planning, or entity conversion, may trigger refinancing requirements. Most commercial loans include change-of-control provisions that require lender consent or loan repayment upon ownership changes.
How Do Lenders Evaluate Miami Commercial Refinance Applications?
Refinance underwriting in Miami follows similar principles to acquisition financing, with several important distinctions that borrowers should understand.
Current property performance is the foundation of refinance underwriting. Lenders evaluate the trailing 12-month operating history, current rent roll, occupancy rate, and DSCR. Properties with improving performance trends receive more favorable treatment than those with declining metrics. Miami properties that have benefited from the tech/finance migration (higher office rents), industrial tightness (lower warehouse vacancy), or retail strength (tight 3.2% vacancy) are well-positioned for competitive refinance terms.
Updated appraisal is required for all commercial refinances and determines the maximum loan amount based on LTV. Miami's property value appreciation in premium submarkets can result in significantly higher appraised values than the original acquisition price, creating room for cash-out or simply qualifying for more favorable terms. Conversely, properties in challenged submarkets or those affected by rising insurance costs may appraise conservatively.
Insurance cost verification is a critical Miami-specific underwriting step. Lenders require current insurance documentation, including flood, windstorm, and hazard policies, and factor these costs into the DSCR and PITIA calculations. Properties whose insurance costs have increased materially since the original loan may face tighter refinancing terms. Borrowers should obtain updated insurance quotes before applying and consider wind mitigation improvements that could reduce premiums.
Existing loan payoff analysis evaluates prepayment penalties, defeasance costs, and yield maintenance provisions on the current loan. Some CMBS and life company loans carry significant prepayment penalties that must be factored into the refinancing cost-benefit analysis. Borrowers should request a payoff quote from their current lender early in the process.
Borrower financial review varies by program. Conventional and CMBS refinances require personal financial statements and tax returns. DSCR refinances focus on the property and require minimal personal documentation. Agency refinances for multifamily evaluate both property and borrower qualifications.
What Are Current Refinance Rates for Miami Commercial Properties?
Refinance rates in Miami reflect both the national interest rate environment and local market fundamentals. Miami's strong market position across most property types supports competitive pricing.
Agency refinance rates for Miami multifamily properties range from 5.25% to 6.50%, the most competitive available for any property type. These rates apply to stabilized apartment communities with 5+ units, 90%+ occupancy, and 1.25x+ DSCR. The non-recourse structure and 30+ year terms make agency refinancing the gold standard for Miami apartment owners.
Conventional bank refinance rates for all Miami commercial property types range from 5.5% to 7.5%. Industrial properties in Doral and Medley command the most competitive bank pricing, followed by office properties in Brickell and Coral Gables. Bank refinancing typically offers the most flexibility on terms, with options for fixed, floating, and hybrid rate structures.
CMBS refinance rates range from 5.75% to 7.25% for stabilized properties across all types. CMBS refinancing is attractive for borrowers seeking non-recourse structures and standardized documentation. Miami office and retail properties with strong tenant rosters are popular CMBS refinance candidates.
DSCR refinance rates range from 7.0% to 9.5%, reflecting the premium for no-income-documentation lending. Miami investors who used DSCR loans for original acquisition can potentially refinance at lower DSCR rates if the property has improved its cash flow, the borrower's credit score has increased, or market rates have declined.
SBA 504 refinance rates of approximately 6.0% offer the most attractive terms for qualifying owner-occupants. The combination of low rates, high leverage (up to 90% LTV), and 25-year fixed terms makes SBA refinancing compelling for Miami business owners.
Use the commercial mortgage calculator to model refinancing scenarios and compare monthly payments across different programs.
How Does Cash-Out Refinancing Work for Miami Properties?
Cash-out refinancing allows Miami property owners to access the equity that has built up through appreciation, loan paydown, and value-add improvements. Understanding the mechanics helps owners maximize the value of this strategy.
The cash-out amount is determined by the difference between the new loan amount (based on current appraised value and LTV) and the existing loan payoff. For example, a Miami industrial property originally purchased for $5 million with a current loan balance of $3 million might appraise at $7 million. At 70% LTV, the new loan would be $4.9 million. After paying off the existing $3 million balance, the owner receives approximately $1.9 million in cash proceeds (minus closing costs).
Most Miami lenders allow cash-out up to 70% to 75% of current appraised value, with the specific limit depending on property type and loan program. Agency multifamily refinancing allows cash-out up to 75% LTV. Conventional bank refinancing typically caps at 70% to 75%. DSCR refinancing allows cash-out up to 75% to 80%. CMBS refinancing allows cash-out up to 70% to 75%.
The property must demonstrate adequate cash flow to service the new, larger loan. In Miami, this means the DSCR after accounting for flood, windstorm, and hazard insurance must meet the lender's minimum threshold (typically 1.20x to 1.25x). Properties that have appreciated significantly but whose insurance costs have also risen may find that the achievable cash-out is limited by the DSCR constraint rather than the LTV limit.
Common uses for Miami cash-out refinance proceeds include funding renovations or capital improvements, down payments on additional investment properties, business capital needs, debt consolidation (paying off higher-rate loans or lines of credit), and hurricane mitigation improvements that reduce insurance costs.
What Property Types Are Best Positioned for Miami Refinancing?
Not all Miami properties are equally positioned for attractive refinancing. Understanding which asset profiles command the most competitive terms helps owners prioritize and prepare their applications.
Industrial properties in Doral and Medley are among the best-positioned for Miami refinancing. The sector's tight vacancy, strong rents, and essential trade infrastructure create compelling underwriting metrics. Industrial properties with NNN leases from creditworthy tenants qualify for rates as low as 5.5% with 75% LTV. Cash-out refinancing is particularly attractive for owners of older industrial properties that have appreciated significantly.
Multifamily properties with 5+ units benefit from the availability of agency financing at rates of 5.25% to 6.50%. Properties achieving 90%+ occupancy and 1.25x+ DSCR (after Miami insurance costs) qualify for the most competitive available terms. Owners who originally financed at higher rates or used bridge/DSCR loans for acquisition can achieve significant savings by refinancing into agency permanent financing.
Office properties in Brickell and Coral Gables are well-positioned for refinancing given Miami's office market outperformance. Vacancy below the national average, rising rents, and strong tenant quality support competitive refinancing terms. Office owners who have benefited from the finance/tech migration through improved leasing may find that their properties qualify for better terms than when originally financed.
Retail properties with strong tenancy benefit from Miami's tight retail vacancy of approximately 3.2%. NNN leased retail with creditworthy tenants qualifies for competitive refinancing, and the elimination of Florida's commercial lease tax has improved tenant economics, supporting higher property valuations.
Mixed-use properties in Wynwood and Edgewater that have achieved stabilization across all components are candidates for permanent refinancing. Owners transitioning from construction or bridge loans into long-term permanent financing can lock in rates that reflect the maturing fundamentals of these neighborhoods.
Properties with hurricane mitigation improvements are particularly well-positioned for refinancing. Owners who have invested in impact windows, reinforced roofing, and other wind mitigation features may find that reduced insurance premiums have improved their DSCR, qualifying them for better refinancing terms than their unimproved insurance profile would have allowed.
How Do Miami Insurance Costs Impact Refinancing?
Insurance costs are a critical variable in Miami commercial refinancing that can either enable or constrain refinancing options.
Miami property owners seeking refinancing should be prepared for lenders to scrutinize current insurance costs, including flood, windstorm, and hazard premiums. If insurance costs have increased since the original loan was underwritten, the property's DSCR may have compressed, potentially limiting the new loan amount or increasing the rate.
The insurance trajectory matters. Properties in FEMA-designated flood zones have seen premium increases as federal flood insurance programs (NFIP) have implemented Risk Rating 2.0, which adjusts premiums based on actual flood risk rather than flood zone designations alone. Some Miami properties have seen flood insurance premiums increase 50% to 100% or more under the new rating system.
Strategies for managing insurance costs in the refinancing process include obtaining a new flood zone determination to verify or update the property's designation, investing in wind mitigation improvements before refinancing to qualify for lower premiums, shopping multiple insurance carriers (including private flood alternatives to NFIP), obtaining a letter of map amendment (LOMA) if the property's elevation supports reclassification out of a high-risk flood zone, and structuring the refinancing with an interest-only period to offset the DSCR impact of higher insurance costs.
Properties built to post-2002 Miami-Dade hurricane standards consistently receive the most favorable insurance treatment, which translates to better DSCR and more competitive refinancing terms.
What Prepayment Penalties Should Miami Borrowers Consider Before Refinancing?
Existing loan prepayment provisions can significantly impact the cost-benefit analysis of refinancing. Understanding these provisions is essential before committing to a refinancing strategy.
Yield maintenance requires the borrower to pay the lender the present value of the difference between the existing loan rate and the current market rate for the remaining loan term. This can be extremely expensive if the existing rate is significantly above current market rates and the remaining term is long. For a $10 million loan with 5 years remaining at 7.5% when market rates are 6%, yield maintenance could cost $500,000 or more.
Defeasance requires the borrower to purchase a portfolio of U.S. Treasury securities that replicate the remaining cash flows of the existing loan. The cost depends on the spread between the loan rate and Treasury rates. Defeasance is common in CMBS loans and can be expensive but allows the property to be released from the existing lien. Defeasance typically costs 3% to 5% of the outstanding loan balance.
Step-down prepayment penalties decrease over the loan term, typically structured as 5-4-3-2-1 (5% of the outstanding balance in year 1, declining to 1% in year 5). These are common in bank and agency loans and become less expensive as the loan seasons.
Lockout periods prohibit any prepayment for a specified period, typically 1 to 3 years. During the lockout, the borrower cannot refinance regardless of market conditions. Loans in lockout periods cannot be refinanced without the existing lender's consent.
Open prepayment allows the borrower to prepay without penalty, typically during the final 3 to 6 months of the loan term. Borrowers approaching their open prepayment window should begin refinancing preparation immediately to close within the penalty-free period.
Miami property owners considering refinancing should request a prepayment quote from their existing lender as the first step in evaluating whether refinancing makes economic sense.
How Should Miami Property Owners Prepare for the Refinancing Process?
Proper preparation streamlines the refinancing process and improves the likelihood of securing the most competitive terms.
Begin by assembling a comprehensive property package including trailing 12-month operating statements, current rent roll, property tax bills, current insurance policies and premium schedules (including flood and windstorm), capital expenditure history, and recent photos of the property's condition. For properties with NNN leases, include copies of all lease agreements and tenant financial statements.
Obtain updated insurance quotes before applying. Insurance costs are a primary underwriting variable in Miami, and presenting current quotes demonstrates preparedness and allows the lender to accurately model DSCR. If you have completed wind mitigation improvements, obtain an updated wind mitigation inspection report to document the premium reductions.
Request a payoff statement from your current lender, including any prepayment penalties, defeasance costs, or yield maintenance obligations. This information is essential for calculating the net benefit of refinancing and determining optimal timing.
Prepare a borrower package including personal financial statements for all guarantors, schedule of real estate owned, two years of tax returns (not required for DSCR refinancing), and entity documents. For international owners, additional documentation (passport, ITIN/EIN, U.S. entity formation) may be required.
Consider engaging a commercial mortgage broker with Miami market expertise to access the broadest range of capital sources. Miami's refinancing market includes national agencies, local banks, CMBS lenders, life companies, debt funds, and DSCR specialists, and each source has different appetites depending on property type, size, and location.
Contact Clear House Lending to begin the refinancing process for your Miami commercial property.
Frequently Asked Questions About Commercial Refinance Loans in Miami
How much equity can I pull out through a Miami cash-out refinance?
Most Miami lenders allow cash-out up to 70% to 75% of the current appraised value, minus the existing loan balance. Agency multifamily refinancing allows cash-out up to 75% LTV. DSCR loans may offer up to 75% to 80%. The actual achievable amount depends on whether the property's DSCR, after accounting for Miami's elevated insurance costs, supports the larger loan. Properties that have appreciated significantly but face higher insurance costs may be constrained by DSCR rather than LTV.
How long does a commercial refinance take to close in Miami?
Miami commercial refinance closings typically take 30 to 90 days depending on the program. DSCR refinances close fastest at 21 to 45 days. Conventional bank refinances take 45 to 60 days. Agency (Fannie Mae/Freddie Mac) refinances require 45 to 75 days. CMBS refinances take 60 to 90 days. SBA refinances require 60 to 120 days. Factors that can extend timelines include appraisal backlogs, complex insurance procurement, and existing loan defeasance or yield maintenance calculations.
Can I refinance a Miami property with a low DSCR due to insurance costs?
Yes, several strategies address low DSCR caused by elevated Miami insurance costs. Interest-only refinancing reduces the debt service component, improving DSCR without reducing the loan amount. Lower-leverage refinancing (60% to 65% LTV) reduces debt service and may qualify for better rates. Wind mitigation improvements before refinancing can reduce insurance premiums by 20% to 40%. Some DSCR lenders offer programs with minimum DSCRs as low as 1.0x, accommodating properties with tighter cash flows.
Should I refinance my Miami property now or wait for rates to drop further?
The decision depends on your current rate, loan maturity date, and market conditions. If your existing rate is significantly above current market rates (100+ basis points), refinancing now locks in savings regardless of future rate movements. If your loan matures within 18 months, refinancing proactively avoids the risk of less favorable terms at maturity. If rates have stabilized near their current levels (prime at 6.75%), waiting for a significant rate drop involves uncertainty. The cost of a higher rate today must be weighed against the risk of rates increasing or lending conditions tightening.
What are the closing costs for a Miami commercial refinance?
Closing costs for Miami commercial refinances typically range from 1.5% to 3.0% of the new loan amount, including appraisal ($3,000 to $10,000), title insurance (varies by loan amount), legal fees ($5,000 to $15,000), origination fee (0% to 1.0% for banks, 0.5% to 2.0% for other lenders), environmental review ($2,000 to $5,000), insurance procurement costs, and recording fees. SBA refinances may include additional SBA guarantee fees. Prepayment penalties on the existing loan are a separate cost that must be factored into the total refinancing expense.
Can international owners refinance Miami commercial properties?
Yes, international property owners can refinance Miami commercial properties through DSCR programs, conventional bank programs with international lending capabilities, and some CMBS lenders. DSCR refinancing is particularly popular for international owners because no U.S. income documentation is required. Requirements include a valid passport, ITIN or EIN, U.S.-based entity holding the property, and a local property management team. LTV may be reduced by 5% to 10% and rates may carry a 50 to 150 basis point premium compared to domestic borrowers.
Moving Forward With Your Miami Commercial Refinance
Miami's commercial property owners face a favorable refinancing environment in 2026, with stabilized interest rates, improving property fundamentals, and a deep pool of competing lenders. Whether you are refinancing a maturing loan on a Doral industrial property, extracting equity from an appreciated Brickell office building, transitioning from bridge to permanent financing on a Wynwood mixed-use project, or consolidating debt on a Coral Gables retail center, understanding the refinancing landscape is essential to maximizing your financial position.
The key to successful Miami commercial refinancing is proactive preparation, including accurate insurance cost modeling, early prepayment penalty evaluation, and comprehensive property documentation that demonstrates the strength of your asset.
Contact Clear House Lending today to discuss your Miami commercial refinancing options and get matched with the right lender from our network of over 6,000 commercial lending sources.