New York City stands as the largest and most dynamic commercial real estate market in the United States. With over $8.8 billion in tri-state investment volume in Q2 2025 alone and a multifamily sector on track for $10 billion in annual transactions, the city continues to attract both domestic and international capital at a pace unmatched by any other metro. Whether you are financing a mixed-use property in Brooklyn, acquiring a retail storefront in Manhattan, or developing multifamily housing in Queens, understanding the lending landscape is essential to executing a successful deal.
Clear House Lending provides commercial real estate financing across all five boroughs, from conventional commercial mortgages and SBA loans to bridge financing and DSCR loans. This guide covers current market conditions, loan programs, interest rates, and neighborhood-level insights to help you navigate the NYC commercial lending environment in 2026.
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What Does the NYC Commercial Real Estate Market Look Like in 2026?
The New York City commercial real estate market entered 2026 with renewed momentum after a period of recalibration. Investment activity surged across nearly every asset class in 2025, with office transactions jumping 30% to reach $11 billion for the year. Multifamily volume totaled $2.3 billion in Q2 2025 alone, up 11% from the previous quarter, signaling strong investor appetite for rental assets in a city defined by chronic housing undersupply.
Manhattan remains the gravitational center of the market, but each borough presents distinct opportunities. Brooklyn continues its evolution from a residential favorite into a legitimate commercial hub, with neighborhoods like Bushwick, Gowanus, and Sunset Park attracting development capital. Queens, anchored by Long Island City, offers some of the highest rental yields in the city. The Bronx, particularly Mott Haven and the Hub, is experiencing a wave of new development fueled by rezoning initiatives and public infrastructure investment.
The office sector tells a story of two markets. Trophy and Class A properties in Midtown and Hudson Yards are commanding rents between $90 and $125 per square foot, with vacancy rates dropping below 10%. Meanwhile, Class B and C office buildings face vacancy rates above 20%, creating both challenges and repositioning opportunities for investors willing to undertake value-add strategies.
Retail has shown surprising resilience, with Manhattan's retail corridors posting average asking rents of $697 per square foot. Global brands continue investing in flagship locations, and foot traffic has recovered to near pre-pandemic levels in prime areas. Industrial assets in the outer boroughs remain tightly held, though the vacancy rate ticked up to 6.4% in Q4 2025 as the warehousing boom normalized.
What Types of Commercial Loans Are Available in NYC?
New York City borrowers have access to the full spectrum of commercial real estate financing. The right loan structure depends on your property type, investment strategy, timeline, and financial profile.
Conventional Commercial Mortgages are the most common financing tool for stabilized, income-producing properties. These loans typically offer fixed rates for 5, 7, or 10 years with 25 to 30 year amortization schedules. They work well for office buildings, retail centers, and multifamily properties with strong occupancy and cash flow.
SBA Loans are ideal for owner-occupied commercial properties. 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 major assets and can also be structured with 10% down. These programs are particularly popular among small business owners purchasing their own storefronts, medical offices, or restaurants in NYC.
Bridge Loans provide short-term capital for acquisitions, repositioning, or lease-up scenarios where traditional financing is not yet available. In a market as competitive as NYC, bridge financing allows investors to close quickly on time-sensitive deals while stabilizing the asset 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 situations or multiple properties. DSCR loan programs in New York 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, or properties that do not qualify for conventional financing. Explore hard money loan options for time-critical NYC transactions.
Construction Loans fund ground-up development or major renovation projects. Given the scale of development activity in NYC, with projects ranging from boutique condo conversions in the West Village to large-scale mixed-use towers in Long Island City, construction financing remains a critical part of the lending ecosystem.
What Are Current Commercial Loan Rates in New York City?
As of February 2026, commercial mortgage rates in New York City start as low as 5.18% for the most qualified borrowers and stabilized assets. However, rates vary significantly based on the loan program, property type, leverage, and borrower profile.
Conventional commercial mortgages for stabilized properties range from approximately 5.18% to 7.50%, 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 NYC currently range from 6.25% to 8.50%, with rates heavily influenced by the property's net operating income relative to debt service obligations.
To estimate your monthly payments and debt service coverage, use our commercial mortgage calculator or DSCR calculator.
Which NYC Neighborhoods Offer the Best Commercial Investment Opportunities?
New York City's neighborhood-level dynamics create a diverse range of investment profiles. What works in Midtown Manhattan is entirely different from what succeeds in the South Bronx. Here is a borough-by-borough breakdown of where commercial real estate capital is flowing in 2026.
Manhattan continues to attract the lion's share of institutional capital. Hudson Yards and the Far West Side are commanding premium office rents of $90 to $115 per square foot. The Flatiron District remains a magnet for tech and creative tenants, with rents climbing from $85 to $100 per square foot. TriBeCa and the Meatpacking District maintain vacancy rates of just 2% to 5%, making them among the tightest submarkets in the country. Hudson Square has transformed into a media and tech corridor, with Google, Disney, and Squarespace expanding their footprints.
Brooklyn is where much of the market's growth energy is concentrated. Bushwick leads StreetEasy's 2026 neighborhood watch list, with a 30.3% increase in inventory creating new acquisition opportunities. Sunset Park is emerging as a waterfront commercial corridor with prices still well below neighboring Park Slope and Williamsburg. Gowanus, recently rezoned, is attracting a wave of mixed-use development that will reshape the neighborhood over the coming decade. Downtown Brooklyn and DUMBO remain established commercial nodes with strong institutional interest.
Queens offers compelling value relative to Manhattan and Brooklyn. Long Island City boasts some of the highest rental yields in NYC, with excellent transit access and a growing roster of corporate tenants. Astoria provides a blend of retail, restaurant, and mixed-use investment opportunities at prices that still offer meaningful cash-on-cash returns.
The Bronx represents the most aggressive growth story in NYC commercial real estate. Mott Haven is undergoing a transformation into a modern residential and commercial hub, with new developments bringing retail, dining, and Class A apartments to the waterfront. The Hub, centered around 149th Street and Third Avenue, is the borough's commercial heart and offers some of the most affordable commercial acquisition prices in the city.
What Are the Requirements for a Commercial Loan in NYC?
Commercial loan requirements in New York City generally align with national standards, but the high property values and complex regulatory environment add layers that borrowers should anticipate.
Down Payment: Most conventional commercial loans require 25% to 35% down, translating to significant capital given NYC property prices. SBA loans offer a more accessible entry point at 10% to 20% down. DSCR loans typically require 20% to 35% down.
Credit Score: Conventional lenders generally require a minimum credit score of 680. SBA programs may accept scores as low as 650, while hard money lenders focus more on collateral value than credit history. DSCR loan programs in New York typically require a minimum score of 640.
Debt Service Coverage Ratio: Lenders want to see a DSCR of at least 1.20x to 1.25x, meaning the property's net operating income should be 20% to 25% above annual debt payments. In rent-stabilized areas of Manhattan and certain Brooklyn neighborhoods, lenders may apply more conservative income projections.
Property Documentation: Borrowers should expect to provide trailing 12-month operating statements, rent rolls, tax returns (for non-DSCR loans), environmental reports, and property appraisals. NYC-specific requirements may include certificate of occupancy verification, compliance with Local Law 97 energy benchmarking, and assessment of any rent regulation status.
Experience: Many lenders, particularly for bridge and construction loans, prefer borrowers with a track record of successful commercial real estate projects. First-time investors may face higher rates or lower leverage.
Ready to discuss your specific situation? Contact our team for a personalized loan analysis based on your NYC property and investment goals.
How Does the NYC Market Compare to Other Major Metros?
New York City consistently ranks as the most active commercial real estate market in the United States, but how do its fundamentals stack up against peer cities?
NYC's office market, despite elevated vacancy in Class B and C segments, generates higher absolute rents than any other U.S. city. Manhattan's average office asking rent of approximately $68 per square foot dwarfs the national average of roughly $35 per square foot. Even at a 14.2% vacancy rate, Manhattan's office market attracted $11 billion in investment in 2025.
The multifamily sector is where NYC truly separates itself. Apartment vacancies hover around 3% in Manhattan and below 2% in the outer boroughs, compared to national averages near 6%. This chronic undersupply, combined with strong employment growth and continued immigration, supports rent growth that few other metros can match.
Cap rates in NYC are among the lowest in the nation, reflecting the market's perceived stability and depth of demand. Multifamily cap rates average approximately 4.5% to 5.5% in Manhattan and 5.0% to 6.5% in the outer boroughs. While this means lower initial yields compared to markets like Dallas, Atlanta, or Phoenix, investors accept compressed returns in exchange for NYC's unparalleled liquidity, rent growth potential, and asset appreciation history.
What Property Types Are Most Commonly Financed in NYC?
The composition of commercial lending in New York City reflects the unique characteristics of the market. Unlike sunbelt metros dominated by industrial and suburban office, NYC's financing activity is heavily weighted toward multifamily, mixed-use, and retail properties.
Multifamily remains the most financed property type by a significant margin, driven by the city's insatiable demand for rental housing. From luxury towers in Manhattan to workforce housing in the Bronx, multifamily assets attract both institutional and private capital. The $10 billion annual transaction pace reflects both the scale of the market and the favorable lending terms available for well-located rental properties.
Mixed-Use Properties are a defining feature of NYC's commercial landscape. Buildings with ground-floor retail and upper-floor residential or office space are common throughout all five boroughs and represent a significant share of commercial loan originations. These properties offer diversified income streams that lenders find attractive.
Retail financing has rebounded as consumer confidence and foot traffic returned. Manhattan's prime retail corridors, from Fifth Avenue to SoHo to the Upper East Side, continue to attract global brands willing to pay premium rents for visibility and prestige.
Office lending is active but selective. Lenders strongly prefer trophy and Class A assets with committed tenancy. Value-add office plays, particularly conversions of older office buildings to residential use, represent a growing segment of the lending market.
Industrial assets in the outer boroughs command strong lender interest due to tight supply and rising rents. Last-mile distribution facilities, cold storage, and production spaces are among the most sought-after industrial subtypes.
If you are ready to explore financing for your NYC 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 NYC?
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. Conventional commercial mortgages typically require 25% to 35% down, while DSCR loans for investment properties generally require 20% to 35%. Given NYC's high property values, even a 10% down payment can represent a substantial capital commitment, so planning your equity position early in the process is essential.
How long does it take to close a commercial loan in New York City?
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 steps. Bridge loans and hard money loans can close in as little as 7 to 14 days, making them popular for competitive bidding situations in NYC where speed can determine whether you win or lose a deal.
Are commercial loan rates higher in NYC than other markets?
Commercial loan interest rates are primarily driven by national capital markets, not local geography. A stabilized multifamily property in Manhattan will generally receive similar base rates as a comparable asset in Chicago or Los Angeles. However, the higher property values in NYC mean larger loan amounts, which can sometimes unlock more competitive pricing from lenders eager to deploy capital in the nation's premier market.
Can I get a commercial loan for a rent-stabilized building in NYC?
Yes, but lenders apply stricter underwriting to rent-stabilized properties. Because rent increases are limited by regulation, lenders typically use conservative income projections and may require lower loan-to-value ratios. Properties subject to the Housing Stability and Tenant Protection Act of 2019 face particularly careful scrutiny. That said, rent-stabilized buildings remain financeable, and many lenders have specialized programs for this asset class.
What is the best loan type for a first-time commercial investor in NYC?
For first-time investors purchasing owner-occupied property, SBA loans offer the most accessible entry point 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 coverage requirements.
Do I need to be a New York resident to get a commercial loan for NYC property?
No, you do not need to be a New York State resident to obtain commercial financing for a property in NYC. Most commercial lenders evaluate the property's income potential, location, and condition rather than the borrower's state of residence. International investors also regularly finance NYC commercial real estate, though they may face additional documentation requirements and potentially higher down payment thresholds.
Take the next step in your NYC commercial real estate journey. Contact Clear House Lending today for a free consultation and rate quote tailored to your specific property and investment strategy.