San Antonio is one of the fastest-growing major cities in the United States, ranking as the nation's fourth fastest-growing city between 2023 and 2024. With a metro area population exceeding 2.5 million, a GDP surpassing $192 billion, and payroll growth of 6.3% annualized in early 2025, the Alamo City presents compelling opportunities for commercial real estate investors and business owners. Whether you are financing a retail center near The Pearl, a multifamily complex in Stone Oak, or an industrial property along the I-35 corridor, understanding the local lending landscape is essential to maximizing your returns.
This guide covers everything you need to know about securing commercial loans in San Antonio - from current interest rates and loan programs to submarket analysis and step-by-step application guidance.
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What Are the Current Commercial Loan Rates in San Antonio?
As of early 2026, commercial mortgage rates in San Antonio start as low as 5.18% for well-qualified borrowers with strong properties. However, the rate you receive depends heavily on property type, loan structure, your financial profile, and the lender you choose.
Here is a breakdown of current rate ranges by loan type:
For conventional commercial mortgages on stabilized properties, expect rates between 5.75% and 7.25% depending on loan-to-value ratio and property class. Bridge loans for value-add or transitional properties typically carry rates from 7.5% to 11%, reflecting their short-term nature and higher risk profile. SBA loans, including 7(a) and 504 programs, offer rates from 5.5% to 8.5% for owner-occupied commercial properties.
Commercial loan rates have remained relatively stable over the past several months, with Freddie Mac reporting average rates of 6.79% at the end of October 2025 and 6.95% at the end of January 2026. This stability gives borrowers a reasonable window to lock in financing without the dramatic swings that characterized 2023 and early 2024.
To estimate your monthly payments and determine what rate works for your investment, try our commercial mortgage calculator.
Which Loan Programs Are Available for San Antonio Commercial Properties?
San Antonio borrowers have access to the full spectrum of commercial lending products. The right choice depends on your property type, investment strategy, and financial situation.
Conventional Commercial Mortgages
These are the workhorses of commercial lending - fixed or adjustable-rate loans from banks, credit unions, and conduit lenders. They typically require 20-25% down, a debt service coverage ratio (DSCR) of 1.20x or higher, and strong borrower financials. Terms range from 5 to 25 years with amortization periods of up to 30 years.
SBA Loans for San Antonio Small Businesses
The SBA 7(a) program offers up to $5 million for owner-occupied commercial real estate, while the SBA 504 program can finance up to $20 million for major fixed-asset purchases. These programs are particularly popular among San Antonio small business owners along Broadway, in the Medical Center area, and in emerging corridors like Westover Hills. Read our complete SBA loan guide for commercial real estate to learn more about eligibility requirements and application steps.
DSCR Loans for Rental Property Investors
For investors who prefer to qualify based on property income rather than personal income, DSCR loans are an excellent option. These loans evaluate whether the rental income from your property can cover the mortgage payment, typically requiring a DSCR of 1.0x to 1.25x. They are ideal for investors building portfolios across San Antonio's high-yield rental markets, where gross rental yields of 6% to 8% are common in submarkets like West San Antonio, Southtown, and Harlandale. Use our DSCR calculator to see if your property qualifies.
Bridge and Hard Money Loans
When you need to close fast or are financing a property that does not yet meet conventional lending standards, bridge loans and hard money loans fill the gap. These short-term products (typically 6 to 36 months) are popular for fix-and-flip projects, lease-up situations, and acquisitions where timing is critical. Multiple private lenders serve the San Antonio market with loan amounts starting at $100,000.
Learn more about how bridge financing works in our commercial bridge loan guide.
What Makes San Antonio's Commercial Real Estate Market Attractive to Investors?
San Antonio's commercial real estate market benefits from a rare combination of strong population growth, economic diversification, relative affordability, and landlord-favorable fundamentals.
The city's economy has surpassed $192.8 billion in gross metropolitan product as of 2024, with projections to reach nearly $210 billion by 2026. This growth is fueled by several key sectors:
- Military and defense: San Antonio is home to Joint Base San Antonio, one of the largest military installations in the country, providing a stable employment base
- Healthcare: The South Texas Medical Center is the largest medical complex in South Texas, anchoring thousands of healthcare jobs and driving demand for medical office and retail space
- Cybersecurity and technology: UTSA has positioned San Antonio as a national hub for cybersecurity, with the NSA establishing a major presence at the National Security Collaboration Center
- Tourism: Over 30 million visitors annually generate enormous demand for hospitality, retail, and restaurant properties, particularly along the River Walk and near The Pearl
- Manufacturing: The sector is projected to expand 5.3% by 2029, driving industrial demand along the I-35 and I-10 corridors
San Antonio's unemployment rate consistently remains below the national average, and projected job growth for 2025 was estimated at 13,500 new positions - a 1.1% increase that continues to fuel demand for every commercial property type.
How Do Cap Rates and Vacancy Rates Compare Across Property Types in San Antonio?
Understanding cap rates and vacancy trends is critical for both investors evaluating deals and borrowers seeking financing. Lenders use these metrics to assess property value and risk.
Retail
San Antonio's retail market remains one of the healthiest in Texas. Vacancy stands at just 4.3% as of Q3 2025, near record lows, giving landlords significant pricing power. The average cap rate for retail properties is 7.0%, and over the past 12 months, 252 retail properties sold at an average of $203 per square foot with total annual sales volume of $122 million. Average triple-net rental rates sit at $19.16 per square foot. Major tenants like Dick's Sporting Goods and Home Depot continue to lease large-format spaces, signaling ongoing demand.
Office
The office sector faces the most headwinds. Vacancy has climbed to 16.8%, with Class A rents averaging $29.66 per square foot. Cap rates on Class A office properties have risen to 8.4%, while Class B sits at 8.68% and Class C at 9.02%. Investors with a value-add strategy may find opportunities, but lenders will scrutinize office deals more carefully and may require lower LTVs.
Multifamily
Multifamily cap rates in San Antonio are relatively tight: 4.74% for Class A, 4.92% for Class B, and 5.38% for Class C properties. Rents averaged $1,246 per month at the end of 2024, with a modest decline of 2.3% year-over-year. The construction pipeline is thinning rapidly - 2025 completions are projected at just 5,197 units, a 60% decrease from 2024's 12,858 deliveries. This supply reduction should support rent recovery by late 2025 into 2026.
Industrial
San Antonio's industrial market remains balanced with 8-10% vacancy and rents around $6-7 per square foot. Prime industrial deals trade near 5.5-6% cap rates, while older or fringe assets trade at 7% or higher. Growth along the I-35 corridor north of San Antonio continues to attract major investment.
Which San Antonio Submarkets Offer the Best Opportunities for Commercial Investment?
San Antonio's commercial landscape is diverse, with distinct submarkets offering different risk-return profiles. Here is where the action is in 2025-2026:
Downtown and River Walk
Downtown San Antonio has 26 significant commercial development projects underway or in the proposed stage, with a total rentable building area of approximately 3.2 million square feet. The average home sale price downtown is $455,000, with about half of homes being rental units. This submarket is ideal for hospitality, mixed-use, and retail investments that benefit from San Antonio's tourism economy.
The Pearl District
Once a neglected brewery campus, The Pearl has become one of the most desirable mixed-use developments in Texas. Commercial properties here command premium rents, and the surrounding area continues to see investment in restaurants, boutique retail, and multifamily housing. Financing properties in The Pearl typically requires strong borrower profiles given the higher price points.
Stone Oak and North Central
Northern submarkets accounted for nearly half of all commercial transactions during the first half of 2025. North Bexar County boasts a median household income of $121,042, with a dense concentration of high-wage healthcare and professional services jobs. Stone Oak is particularly strong for medical office, retail strip centers, and Class A multifamily.
Medical Center and Westover Hills
The South Texas Medical Center complex generates consistent demand for medical office space, pharmacies, and healthcare-related retail. Westover Hills, located along Highway 151, has seen substantial development including the USAA headquarters expansion, making it attractive for office, retail, and multifamily investors.
Alamo Heights
This affluent enclave consistently commands premium commercial rents, particularly for boutique retail and restaurant concepts. Properties here are tightly held, meaning cap rates tend to be lower but tenant quality is exceptional.
I-35 Corridor (Schertz, Cibolo, New Braunfels)
The industrial and logistics boom along I-35 north of San Antonio has attracted hundreds of millions of dollars in new development. This corridor benefits from its position between San Antonio and Austin, making it ideal for distribution centers, flex industrial, and highway-oriented retail.
Ready to finance a commercial property in one of these submarkets? Contact our lending team for a free consultation and rate quote tailored to your San Antonio investment.
What Are the Requirements for Getting a Commercial Loan in San Antonio?
While specific requirements vary by lender and loan program, here are the general benchmarks San Antonio commercial borrowers should prepare for:
Most conventional lenders want to see a credit score of 660 or higher (680+ for the best rates), a debt service coverage ratio of at least 1.20x to 1.25x, and a loan-to-value ratio of 65-80% depending on property type. You will typically need 2-3 years of tax returns, a personal financial statement, a current rent roll (for income properties), and a recent property appraisal.
For DSCR loans, the requirements shift away from personal income verification. Instead, lenders focus almost entirely on whether the property's net operating income can cover the debt payments. This makes DSCR loans popular among self-employed investors and those with complex tax situations. See our detailed guide on DSCR loan requirements for specifics.
SBA loans add another layer: the property must be at least 51% owner-occupied, and the business must meet SBA size standards. However, the trade-off is access to lower down payments (as low as 10%) and longer repayment terms.
How Does the Commercial Loan Application Process Work in San Antonio?
Securing commercial financing in San Antonio follows a predictable process, though timelines can vary based on loan type and property complexity.
The fastest closings are bridge and hard money loans, which can fund in as little as 7-14 days. Conventional commercial mortgages typically take 45-60 days, while SBA loans can stretch to 60-90 days due to additional government underwriting requirements.
To speed up your application, prepare your documents in advance: tax returns, financial statements, property details, business plan (for SBA), and any existing lease agreements. Working with an experienced commercial lender who knows the San Antonio market can save weeks off your timeline.
Get started on your commercial loan application today - our team specializes in San Antonio commercial real estate financing.
What Should San Antonio Borrowers Watch for in the Current Market?
Several trends are shaping the San Antonio lending environment heading into 2026:
Multifamily supply correction: With 2025 completions dropping 60% and new starts down 80% from 2023, the oversupply that pressured rents is rapidly correcting. Lenders are becoming more favorable toward multifamily deals as occupancy stabilizes around 89-90%.
Retail strength: At 4.3% vacancy and $19.16 per square foot in NNN rents, San Antonio's retail market offers some of the strongest fundamentals of any Texas metro. Lenders tend to offer favorable terms for well-located retail assets.
Office caution: With 16.8% vacancy and rising cap rates, office properties face the tightest lending conditions. Expect lower LTVs (55-65%), higher rates, and more required reserves for office acquisitions.
Insurance costs rising: Property insurance in San Antonio increased 18.3% over the trailing 12-month period. Factor this into your pro forma when applying for financing, as lenders will underwrite to current insurance costs.
Real estate tax relief: On the positive side, real estate taxes in San Antonio declined 8.9% over the same period, providing some expense relief for property owners and improving net operating income.
Frequently Asked Questions About Commercial Loans in San Antonio
What is the minimum down payment for a commercial loan in San Antonio?
Most conventional commercial loans in San Antonio require 20-25% down, resulting in a 75-80% loan-to-value ratio. SBA 504 loans can go as low as 10% down for owner-occupied properties. Bridge and hard money lenders typically require 25-35% equity. The exact requirement depends on property type, borrower strength, and market conditions in your specific submarket.
Can I get a commercial loan in San Antonio with bad credit?
Yes, though your options narrow. Hard money and bridge lenders focus more on the property's value and income potential than your personal credit score. Some will work with scores as low as 550-600, though you will pay higher rates (typically 9-12%). DSCR loans also place less emphasis on personal credit, focusing instead on the property's debt service coverage ratio.
How long does it take to close a commercial loan in San Antonio?
Timelines vary significantly by loan type. Hard money and bridge loans can close in 7-14 days. Conventional commercial mortgages typically take 45-60 days. SBA loans usually require 60-90 days due to additional underwriting steps. Having your documents organized and working with a local lender familiar with the San Antonio market can reduce these timelines.
What types of commercial properties can I finance in San Antonio?
Virtually all commercial property types are financeable in San Antonio, including multifamily apartments, retail centers, office buildings, industrial warehouses, mixed-use developments, hotels, medical office buildings, self-storage facilities, and special-purpose properties. Each property type has different lending criteria, and some lenders specialize in specific asset classes.
Are commercial loan rates in San Antonio different from the rest of Texas?
Commercial loan rates in San Antonio are generally in line with other major Texas metros like Dallas, Houston, and Austin. However, local market conditions do influence terms. For example, San Antonio's strong retail fundamentals may result in slightly better terms for retail properties, while the city's higher office vacancy could lead to tighter terms for office deals compared to Austin or Dallas.
What is a DSCR loan and why is it popular in San Antonio?
A DSCR (Debt Service Coverage Ratio) loan qualifies borrowers based on the property's rental income rather than personal income. If your property generates enough rental income to cover the mortgage payment (typically 1.0x to 1.25x), you can qualify regardless of your personal income or employment status. These loans are popular in San Antonio because the city's rental yields of 6-8% in key submarkets like Southtown, West SA, and Harlandale often exceed the minimum DSCR thresholds.
How Can You Get Started With a Commercial Loan in San Antonio?
Whether you are a first-time commercial investor or an experienced operator expanding your San Antonio portfolio, the right financing partner makes all the difference. Our team at Clear House Lending specializes in commercial real estate loans across all San Antonio submarkets and property types.
We offer competitive rates, fast closings, and local market expertise that national lenders simply cannot match. From bridge loans for time-sensitive acquisitions to SBA financing for owner-occupied properties, we will match you with the right program for your needs.
Contact us today to discuss your San Antonio commercial real estate financing needs and get a personalized rate quote.
Sources: Select Commercial, MMG Real Estate Advisors 2025 San Antonio Forecast, Partners Real Estate San Antonio Retail Q3 2025, Crexi San Antonio Market Report, Dallas Fed San Antonio Economic Indicators, Axios San Antonio Economy, Texas Real Estate Research Center