Why Is Raleigh One of the Fastest-Growing Commercial Real Estate Markets in the Southeast?
Raleigh has established itself as one of the most compelling commercial real estate markets in the United States, powered by the Research Triangle's world-class technology and life sciences ecosystem, sustained population growth, and a diversified economy that continues to attract major corporate investment. For investors and developers seeking commercial loans in Raleigh, the metro area delivers strong fundamentals across every major property type, from multifamily and industrial to office, retail, and mixed-use development.
The data behind Raleigh's growth trajectory is striking. The city surpassed 500,000 residents in 2024, and the Raleigh-Cary metropolitan area has grown by approximately 10.2% since 2020 to reach roughly 1.6 million people. Raleigh is adding residents at a rate of approximately 1.67% annually, making it one of the fastest-growing large cities in the country. The Milken Institute recognized Raleigh as the best-performing large city in America for 2025, citing its exceptional combination of job growth, wage gains, and economic vitality.
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Raleigh's economic engine is fueled by technology, life sciences, higher education, and an expanding financial services sector. Research Triangle Park (RTP), the largest research park in North America at roughly 7,000 acres, anchors the regional economy and houses operations for Cisco, IBM, Fidelity Investments, and hundreds of other companies. Apple's planned $1 billion East Coast campus in RTP is expected to create at least 3,000 jobs with average salaries of approximately $187,000. Epic Games, headquartered in nearby Cary, and major employers like Red Hat (now IBM), SAS Institute, and MetLife reinforce the region's technology dominance.
The commercial real estate lending environment in Raleigh reflects this economic momentum. Commercial mortgage rates in North Carolina start as low as the mid-5% range, and national loan originations were roughly 36% higher in the third quarter of 2025 compared to the prior year. An estimated $936 billion in commercial mortgages will mature in 2026 nationwide, creating significant refinancing activity that Raleigh borrowers can leverage for improved terms.
For borrowers exploring financing options, Clear House Lending connects Raleigh investors and developers with a network of over 6,000 commercial lenders to find the most competitive rates and terms for their specific project.
What Loan Programs Are Available for Raleigh Commercial Properties?
Raleigh's commercial lending market offers a full spectrum of financing programs suited to different property types, investment strategies, and borrower profiles. Understanding which program aligns with your project is the first step toward securing competitive terms.
Conventional Commercial Mortgages form the backbone of Raleigh's CRE lending market. Banks and credit unions offer permanent financing with rates between 5.5% and 7.5%, 20 to 25 year amortization, and loan-to-value (LTV) ratios up to 75%. These loans require strong borrower credit, property cash flow with a debt service coverage ratio (DSCR) of 1.25x or higher, and a stabilized operating history. Local and regional banks including First Citizens Bank, Bank of America, and Truist actively lend on Raleigh commercial properties.
Bridge Loans provide short-term capital for acquisitions, value-add repositioning, and time-sensitive transactions. Raleigh bridge lenders offer 12 to 36 month terms with rates between 8.0% and 12.0%, LTV up to 80%, and closing timelines as fast as 5 to 15 days. Bridge financing is particularly active in Raleigh for multifamily value-add plays and transitional office conversions in Downtown and the Warehouse District.
SBA Loans serve owner-occupants acquiring or expanding commercial properties. The SBA 7(a) and 504 programs offer down payments as low as 10%, fixed rates between 5.5% and 8.0%, and terms up to 25 years. Raleigh's SBA lending market is robust, with healthcare, technology services, and professional services driving strong application volumes across Wake County.
DSCR Loans qualify borrowers based on property cash flow rather than personal income, making them ideal for scaling rental portfolios. Raleigh DSCR lenders offer LTV up to 80%, rates between 6.5% and 9.5%, and no income verification requirements. These loans work well for Raleigh investors acquiring stabilized multifamily, mixed-use, or single-tenant retail properties. Use the DSCR calculator to model whether your property qualifies.
CMBS (Conduit) Loans provide non-recourse permanent financing for stabilized properties valued at $2 million or more. Rates range from 5.8% to 7.5% with 10 year terms and 30 year amortization. CMBS lending is active in Raleigh's core submarkets for office, retail, and hospitality properties.
Construction and Development Loans finance ground-up projects and major renovations. Bank construction loans offer rates between 7.0% and 9.0% with 18 to 36 month terms and up to 70% loan-to-cost. Raleigh's strong demand across multiple property sectors creates opportunities for developers who can secure construction financing.
Use the commercial mortgage calculator to estimate monthly payments across different loan programs and scenarios for your Raleigh property.
What Are Current Cap Rates and Returns Across Raleigh Property Types?
Cap rates serve as a barometer for property values and investor expectations in Raleigh. Understanding how cap rates vary by property type and quality helps investors underwrite acquisitions and evaluate financing structures.
Multifamily cap rates in Raleigh generally range from the mid-4% range for institutional-quality Class A assets to the 5% to 6% range for value-add and Class B/C properties. The market's vacancy rate has been normalizing after a wave of new supply, with net absorption reaching approximately 8,305 units in the third quarter of 2025. The supply pipeline is moderating, with roughly 6,000 units expected for completion in 2026, setting the stage for gradual vacancy improvement and rent recovery.
Industrial properties command tight cap rates in Raleigh, reflecting strong investor demand for logistics and life sciences manufacturing space. Overall industrial vacancy sits at approximately 5.9% to 6.8%, while bulk industrial space over 500,000 square feet maintains a remarkably low vacancy of around 2%. Raleigh's industrial market has posted 13 consecutive quarters of positive net absorption, absorbing roughly 368,000 square feet of flex and industrial space in Q1 2025 alone.
Office cap rates vary widely, ranging from 6.5% for Class A assets in prime locations to 9.0% or higher for Class B/C properties in suburban corridors. Raleigh's overall office vacancy reached approximately 23.3% in Q3 2025, though this marked the first quarterly decline after eight consecutive quarters of increases. Class A Downtown assets have shown positive absorption, while the market's technology and life sciences tenants drive flight-to-quality demand.
Retail cap rates in Raleigh range from 5.5% for grocery-anchored and essential-service retail to 7.5% for secondary strip centers. Retail vacancy has compressed to approximately 2.34%, one of the tightest retail markets in the Southeast. Strong consumer spending and limited new supply support healthy rent growth.
Borrowers evaluating acquisitions should use the DSCR calculator to model cash flow coverage ratios and determine how much leverage their Raleigh property can support.
Which Raleigh Submarkets Offer the Strongest Investment Opportunities?
Raleigh's submarket landscape is diverse, with each area offering distinct risk and return profiles for commercial real estate investors. Location selection significantly impacts financing terms, as lenders evaluate submarket fundamentals when underwriting loans.
Downtown Raleigh serves as the city's premier commercial and cultural hub. The Fayetteville Street corridor, Warehouse District, and Glenwood South neighborhoods anchor the urban core with a mix of office, retail, dining, and residential uses. Major projects including the new 17-story Municipal Building and mixed-use developments around Union Station are reshaping the skyline. Downtown office vacancy has stabilized with positive Class A absorption, and the area's walkability and growing residential population create opportunities for ground-floor retail and restaurant investment.
North Hills and Midtown represent Raleigh's most successful suburban mixed-use district. Developed primarily by Kane Realty Corporation, North Hills functions as a live-work-play destination with Class A office, luxury apartments, upscale retail, and hospitality. The Exchange, a 40-acre expansion project, will add approximately 1 million square feet of office space, 300 hotel rooms, and up to 1,275 residential units upon completion around 2027. Cap rates in North Hills tend to be among the tightest in the metro, reflecting strong tenant demand and institutional-quality development.
Research Triangle Park (RTP) remains the region's economic anchor, spanning roughly 7,000 acres across Durham and Wake counties. RTP approved its first covenant changes in 65 years, enabling mixed-use development that will transform the park from a pure employment center into a more dynamic district. Apple's $1 billion campus, combined with existing anchors like Cisco, IBM, and Fidelity, creates sustained demand for adjacent commercial and residential properties.
Glenwood South has evolved into Raleigh's premier entertainment and nightlife district, attracting a young professional demographic and supporting premium restaurant, retail, and residential rents. The Creamery, centered on the historic 1928 Pine State Creamery building, will feature a 37-story residential tower with office and retail components upon completion around 2028.
Brier Creek and the I-540 Corridor offer suburban investment opportunities driven by proximity to Raleigh-Durham International Airport and major employers. The area's retail and mixed-use development continues expanding as residential growth pushes outward along the I-540 beltline.
What Major Development Projects Are Reshaping Raleigh's Commercial Landscape?
Raleigh's development pipeline includes several transformative projects that will reshape the city's commercial real estate landscape and create financing opportunities for investors and developers.
Union West adjacent to Raleigh Union Station combines transit-oriented development with residential and commercial uses. The bus station portion opened in 2025, while approximately 400 apartments are expected to be completed in 2026. This project signals the growing importance of transit-connected development in Raleigh's urban core.
The Exchange at North Hills represents one of the Triangle's largest mixed-use developments. The 40-acre project by Kane Realty Corporation will ultimately deliver roughly 1 million square feet of office space, 300 hotel rooms, and up to 1,275 residential units. The project reflects institutional confidence in Raleigh's suburban mixed-use market and will create significant demand for supporting retail and service businesses.
The Creamery in Glenwood South is transforming the historic Pine State Creamery site into a mixed-use landmark featuring a 37-story residential tower alongside office space and ground-floor retail. With a projected completion around 2028, the project represents one of Downtown Raleigh's most ambitious developments.
The Depot Historic District in the Warehouse District will deliver a 170-key boutique hotel and over 30,000 square feet of street-level retail while preserving the historic 1912 building. The project includes outdoor gathering spaces and pedestrian-friendly connections that enhance the surrounding neighborhood's appeal.
Oldham and Worth, a 250-unit apartment building on West Cabarrus Street, is expected to open in 2026, adding density to Raleigh's growing downtown residential market.
These projects create ripple effects throughout the Raleigh commercial market, increasing demand for supporting services and attracting additional investment in adjacent areas. Contact Clear House Lending to discuss financing for projects in Raleigh's growth corridors.
How Do Raleigh Commercial Loan Rates Compare to National Averages?
Raleigh's commercial lending market benefits from strong competition among local, regional, and national lenders, generally producing rates at or slightly below national averages for comparable property types and borrower profiles.
The broader interest rate environment has stabilized heading into 2026. After peaking above 8% in 2023 and 2024, the prime rate settled at 6.75% as of December 2025. This stabilization has boosted borrowing and refinancing activity, with loan originations rising roughly 36% year-over-year in Q3 2025. Alternative lenders, including debt funds and mortgage REITs, captured 37% of non-agency closings in 2025, outpacing banks at 31%, giving Raleigh borrowers more options than ever.
Raleigh-specific factors that influence lending terms include the city's strong population growth trajectory, Research Triangle's diversified economy, and North Carolina's business-friendly tax environment. Lenders view Raleigh as a premium growth market with lower risk compared to many Sun Belt peers. Properties in core submarkets like Downtown, North Hills, and areas proximate to RTP generally receive the most competitive pricing, while assets in transitional locations or with lease-up risk may face wider spreads.
SBA lending in Raleigh is particularly competitive, with multiple national and regional banks actively pursuing small business borrowers. First Citizens Bank, Truist, Bank of America, and Wells Fargo maintain strong SBA lending operations in Wake County. The depth of SBA activity means Raleigh small business owners have excellent options for acquiring owner-occupied commercial properties.
What Property Types Are Raleigh Lenders Most Eager to Finance?
Lender appetite in Raleigh varies by property type, reflecting the relative risk profiles and market fundamentals of each sector. Understanding lender preferences helps borrowers position their financing requests for the best possible terms.
Industrial and logistics properties attract the strongest lender interest in Raleigh. With overall vacancy at approximately 5.9% to 6.8%, bulk space vacancy at around 2%, and 13 consecutive quarters of positive net absorption, industrial assets represent low-risk lending opportunities. Lenders offer the most aggressive terms for modern warehouse and distribution facilities, particularly those serving the life sciences supply chain and e-commerce fulfillment sectors. Raleigh's position along the I-40 and I-85 corridors supports long-term logistics demand.
Multifamily properties remain highly financeable despite an elevated vacancy environment. Lenders recognize that Raleigh's supply wave is moderating, with construction starts declining and deliveries expected to normalize in 2026. Stabilized Class A multifamily in core locations and well-positioned value-add plays in emerging neighborhoods attract competitive financing. The metro's approximately 1.67% annual population growth rate underpins sustained renter demand.
Retail properties benefit from Raleigh's population growth and remarkably tight vacancy of approximately 2.34%. Grocery-anchored centers, mixed-use retail in walkable neighborhoods like North Hills and Cameron Village, and everyday-needs shopping centers in growing suburban locations attract favorable lending terms.
Life sciences and medical office properties represent a niche strength in the Raleigh market. The Research Triangle's biotech and pharmaceutical corridor generates sustained demand for specialized lab, manufacturing, and medical office space. Lenders with life sciences expertise offer competitive terms for well-located assets in this sector.
Office properties present a more nuanced lending landscape. While the overall vacancy rate of approximately 23.3% creates caution, the first quarterly decline in vacancy signals stabilization. Trophy and Class A office assets in Downtown and North Hills still attract financing, and the flight-to-quality trend benefits modern, well-amenitized buildings.
What Should Raleigh Borrowers Know About the Loan Application Process?
Securing competitive commercial financing in Raleigh requires thorough preparation and a clear understanding of what lenders evaluate during the underwriting process.
Raleigh commercial lenders evaluate four primary categories during underwriting: property fundamentals (including location, condition, cash flow, and tenant quality), borrower qualifications (including net worth, liquidity, credit history, and real estate experience), market conditions (including submarket vacancy, rent trends, and comparable sales), and deal structure (including LTV, DSCR, and loan term relative to lease expirations).
For stabilized acquisitions and refinances, lenders require a complete loan package that includes trailing 12-month operating statements, a current rent roll, property tax records, insurance documentation, and recent capital expenditure history. The property must demonstrate a DSCR of 1.20x to 1.35x depending on the loan program, meaning the property's net operating income must exceed the annual debt service by 20% to 35%.
For value-add and transitional properties, Raleigh lenders want to see a detailed business plan with realistic renovation budgets, projected rent increases supported by comparable properties, and a clear timeline for stabilization. Bridge lenders focus heavily on the borrower's experience executing similar projects and the availability of liquid reserves to fund unexpected costs.
Construction loan applications require the most documentation, including architectural plans, general contractor agreements with guaranteed maximum pricing, Phase I environmental assessments, and detailed draw schedules. Raleigh construction lenders typically require equity contributions of 25% to 40% funded before the first draw.
Contact Clear House Lending to begin the pre-qualification process and get matched with Raleigh lenders suited to your specific property and investment strategy.
What Economic Factors Support Long-Term CRE Investment in Raleigh?
Raleigh's long-term commercial real estate investment thesis rests on several structural economic advantages that differentiate it from many competing markets across the Southeast and nationally.
Research Triangle Park serves as one of the most significant innovation ecosystems in the United States. Spanning roughly 7,000 acres, RTP houses approximately 375 companies employing over 60,000 workers in technology, life sciences, and advanced manufacturing. The park's recent covenant changes, the first in 65 years, are unlocking mixed-use development potential that will transform RTP from a traditional office park into a dynamic live-work-play community, further strengthening its appeal to employers and workers.
The life sciences and biotech corridor extending through Raleigh, Durham, and Chapel Hill represents one of the nation's premier clusters for pharmaceutical research and manufacturing. Companies like Biogen, Merck, Novo Nordisk, and dozens of emerging biotech firms maintain significant operations in the Triangle. This concentration creates durable demand for specialized industrial, office, and lab space that commands premium rents and attracts institutional capital.
Raleigh's higher education infrastructure, anchored by NC State University, Duke University (in nearby Durham), and UNC-Chapel Hill, produces a steady pipeline of highly educated talent that attracts and retains employers. NC State alone enrolls over 37,000 students, with strong programs in engineering, computer science, and life sciences that directly feed the region's technology workforce.
North Carolina's business-friendly tax environment, including a flat corporate income tax rate that is among the lowest in the nation, supports continued corporate relocations and expansions. The state's cost of living remains below coastal cities and many competitor Sun Belt metros, allowing employers to attract talent at competitive total compensation costs.
Raleigh's infrastructure investments, including ongoing improvements to I-40, I-440, and I-540, along with expansion of Raleigh-Durham International Airport (RDU), enhance the metro's connectivity and support commercial real estate demand across suburban and urban submarkets alike.
Frequently Asked Questions About Commercial Loans in Raleigh
What is the minimum loan amount for a Raleigh commercial mortgage?
Minimum loan amounts for Raleigh commercial mortgages vary by lender and program. Conventional bank loans typically start at $500,000 to $1 million. SBA 7(a) loans can be as small as $150,000, while SBA 504 loans generally start at $500,000. CMBS conduit loans typically require a minimum of $2 million. Bridge and hard money lenders may fund deals as small as $250,000. Clear House Lending's network includes lenders across all size ranges, ensuring Raleigh borrowers can find appropriate financing regardless of deal size.
How long does it take to close a commercial loan in Raleigh?
Closing timelines for Raleigh commercial loans depend on the loan type. Bridge and hard money loans can close in 5 to 15 business days. Conventional bank loans typically require 45 to 75 days. SBA loans take 60 to 120 days due to the government guarantee process. CMBS loans generally close in 60 to 90 days. Construction loans require 60 to 120 days depending on the complexity of the project. The timeline begins after the lender receives a complete loan application with all required documentation.
Do I need to be located in Raleigh to get a commercial loan there?
No. Raleigh commercial lenders finance out-of-state investors and developers regularly. Many national and regional lenders in Clear House Lending's network actively seek Raleigh deals from borrowers based anywhere in the country. However, lenders may require that you have a local property management team or experienced operating partner in the Raleigh area, particularly for value-add and development projects. Your real estate experience, financial strength, and the quality of the deal matter more than your physical location.
What credit score do I need for a Raleigh commercial loan?
Credit score requirements vary by loan program. Conventional bank loans typically require a minimum credit score of 680 to 700. SBA loans require 650 or higher, though scores above 680 receive more favorable terms. DSCR loans may accept scores as low as 620. Bridge and hard money lenders focus more on property fundamentals and borrower experience than credit scores, with some accepting scores below 600. CMBS loans are underwritten primarily on property cash flow and may have more flexible personal credit requirements.
What is the current average interest rate for Raleigh commercial loans?
As of early 2026, Raleigh commercial loan rates range from approximately 5.5% for the most competitive conventional and SBA permanent loans to 12% or higher for bridge and hard money financing. Specific rates depend on property type, LTV, borrower strength, and loan term. Stabilized multifamily and industrial properties with strong cash flow command the lowest rates, while transitional properties, construction loans, and higher-leverage deals carry higher rates. The prime rate at 6.75% as of December 2025 serves as the baseline for many floating-rate loan products.
Can I refinance my existing Raleigh commercial property to pull out equity?
Yes. Cash-out refinancing is available for Raleigh commercial properties that have appreciated in value or paid down existing debt. Most lenders allow cash-out up to 70% to 75% LTV on the current appraised value. The property must demonstrate adequate cash flow to service the new, larger loan, typically requiring a DSCR of 1.25x or higher. Cash-out proceeds can be used for renovations, acquisitions of additional properties, business purposes, or other investments. Raleigh's strong property value appreciation over recent years means many owners have significant equity available to extract through refinancing.
Positioning Your Raleigh Investment for Success
Raleigh's commercial real estate market offers a rare combination of Research Triangle innovation, sustained population growth, economic diversification, and a business-friendly state environment. Whether you are acquiring a stabilized multifamily property near NC State, developing industrial space along the I-40 corridor, refinancing a retail center in North Hills, or exploring SBA financing for an owner-occupied building Downtown, understanding the lending landscape is critical to maximizing your returns.
The key to securing the best financing terms in Raleigh is working with a lending partner who understands the local market and has relationships with lenders who actively finance Raleigh commercial properties across all asset classes.
Contact Clear House Lending today to discuss your Raleigh commercial real estate project and get matched with the right lender from our network of over 6,000 commercial lending sources.