San Antonio Commercial Refinance Loans: Rate & Term Options [2026 Guide]

Why Are San Antonio Property Owners Refinancing Commercial Loans Right Now?

San Antonio's commercial real estate market is entering 2026 with strong tailwinds. The metro area's economy surpassed $190 billion in GDP, nonfarm employment growth hit 2.3% year over year (outpacing both Texas and the national average), and the population has reached over 1.5 million residents. For commercial property owners carrying loans originated during the high-rate environment of 2022 and 2023, this combination of economic strength and moderating rates creates a compelling refinancing window.

Commercial refinance rates in San Antonio start as low as 5.18% as of early 2026, down meaningfully from the 7%+ rates many borrowers locked in just two years ago. Whether you own a multifamily complex near Joint Base San Antonio, a retail center along the I-35 corridor, or an industrial warehouse in the northeast submarket, refinancing can lower your monthly debt service, free up cash for property improvements, or restructure terms that no longer fit your investment strategy.

This guide breaks down every refinancing option available to San Antonio commercial property owners, including current rate benchmarks, qualification requirements, and strategies tailored to the local market.

What Commercial Refinance Loan Options Are Available in San Antonio?

San Antonio borrowers can access several refinancing structures depending on property type, current loan terms, and investment goals. Understanding the differences helps you select the option that delivers the best financial outcome for your specific situation.

Rate-and-term refinancing replaces your existing loan with new terms, typically at a lower interest rate or longer amortization period. This is the most common refinance type for stabilized properties where the owner simply wants to reduce debt service costs.

Cash-out refinancing allows you to tap into accumulated equity. If your San Antonio property has appreciated or you have paid down significant principal, a cash-out refi lets you extract capital for renovations, acquisitions, or portfolio diversification while maintaining ownership.

Bridge-to-permanent refinancing converts a short-term bridge loan into long-term permanent financing. This is particularly relevant for San Antonio investors who used bridge financing to acquire or reposition a property and have now achieved stabilized occupancy.

SBA 504 refinancing through the Small Business Administration offers up to 90% LTV for owner-occupied commercial properties, making it an attractive option for San Antonio business owners who occupy at least 51% of their building.

What Are Current Commercial Refinance Rates in San Antonio?

Rates vary significantly based on property type, loan structure, and borrower qualifications. Here is where San Antonio commercial refinance rates stand in early 2026 across major asset classes.

Multifamily properties are seeing the most favorable terms. Agency refinances (Fannie Mae and Freddie Mac) for stabilized apartment communities range from 5.6% to 6.1%, while bank and credit union multifamily refinances fall between 6.1% and 6.6%. HUD/FHA multifamily refinance rates start as low as 5.64%, though the process timeline is longer.

Retail properties with strong tenancy and proven cash flow are refinancing at 6.4% to 7.1%. Value-add retail or centers with significant lease rollover risk carry higher rates, typically 7.5% to 8.6%.

Industrial properties in core San Antonio submarkets see rates of 6.2% to 6.8% for multi-tenant buildings, while single-tenant or specialized facilities range from 7.0% to 8.2%.

Office properties face the most challenging refinance environment, with rates generally starting at 7.0% and climbing higher for suburban or lower-occupancy buildings.

Use our commercial mortgage calculator to estimate monthly payments at these current rates for your specific loan amount and term.

How Does San Antonio's Multifamily Market Create Refinancing Opportunities?

San Antonio's multifamily sector represents one of the strongest refinancing opportunities in the Texas market right now. The metro was among six U.S. cities where multifamily supply peaked in 2025, meaning the wave of new deliveries is cresting. Construction starts dropped from 9,500 units in 2023 to under 1,900 units in 2024, which signals that supply pressure will ease substantially through 2026 and 2027.

Demand remains healthy. Approximately 7,000 units were absorbed in 2024, concentrated in northern submarkets. Occupancy for stabilized properties sits at 90.7%, and the workforce housing segment has shown particular resilience, with lower-tier rents actually increasing 1.1% while luxury rents declined 3.2%.

For multifamily owners who acquired or refinanced during the rate spike, the current environment offers a chance to lock in agency rates in the 5.6% to 6.1% range with 30-year amortization and up to 80% LTV. A property that was financed at 7.25% in 2023 could save over $150,000 annually per $10 million in loan balance by refinancing at today's rates.

Borrowers with strong DSCR ratios (1.25x or higher) will qualify for the most competitive terms. Properties in high-demand submarkets like Stone Oak, Alamo Ranch, and the Medical Center corridor are particularly well-positioned.

Why Is Joint Base San Antonio a Strategic Factor in Commercial Refinancing?

Joint Base San Antonio, encompassing Fort Sam Houston, Lackland Air Force Base, and Randolph Air Force Base, generates an estimated $55 billion in annual economic impact for the Texas economy. The installation employs over 67,000 direct personnel with an annual payroll exceeding $1.9 billion, and local purchases by base activities total nearly $105 million per year.

This military presence creates uniquely stable demand for commercial properties in surrounding areas. Retail centers, medical office buildings, multifamily housing, and hospitality properties near the bases benefit from a tenant and customer base that is largely recession-resistant. Lenders recognize this stability, which can translate into more favorable refinancing terms for properties in military-adjacent submarkets.

Property owners near Fort Sam Houston's medical campus, along the Lackland/Highway 90 corridor, or in the Schertz/Converse area near Randolph benefit from consistent housing demand from military families, defense contractors, and healthcare workers. Refinancing these properties with documentation showing stable occupancy driven by military-related demand can help secure rates at the lower end of the range for their asset class.

What Refinancing Strategies Work Best for San Antonio Retail Properties Along I-35?

The I-35 corridor running through San Antonio has become one of the most dynamic commercial real estate corridors in Texas. Over 607,000 square feet of new and expanded retail space was under construction as of 2025, driven by population growth in the northern suburbs of Schertz, Cibolo, and New Braunfels. Major developments like the Frontera Logistics Supersite and Microsoft's $400 million data center in Medina County are drawing additional workers and residents to the area.

For retail property owners along this corridor, refinancing strategy depends on property positioning. Stabilized centers anchored by necessity-based tenants (grocery, medical, fitness) with strong occupancy can target conventional refinance rates of 6.4% to 7.1% with 10-year terms and 25-year amortization.

Owners of older retail properties in high-growth nodes may find more value in a cash-out refinance that provides capital for renovations, re-tenanting, or expansion. With property values along the I-35 corridor appreciating due to the surge of industrial and logistics investment nearby, many owners have accumulated significant equity that can be unlocked.

Retail centers with upcoming lease rollovers present a different challenge. Lenders will scrutinize the rent roll carefully, so owners should negotiate lease renewals or sign new tenants before applying for refinancing. Properties with less than 85% occupancy or significant near-term rollover risk will face higher rates and lower proceeds.

How Can Industrial Property Owners Benefit from Cash-Out Refinancing?

San Antonio's industrial market completed 4.3 million square feet of construction in the first three quarters of 2025 alone, with particular strength along the I-35 and I-10 corridors. The market is also shifting toward higher-tech industrial uses, including data center and advanced manufacturing facilities. This expansion has driven industrial property values upward, creating substantial equity positions for owners who acquired properties even just three to five years ago.

Cash-out refinancing allows industrial property owners to extract a portion of this accumulated equity while maintaining ownership and cash flow. A warehouse purchased for $5 million in 2020 that now appraises at $7.5 million could support a cash-out refinance of up to $5.25 million (at 70% LTV), freeing up capital beyond the original purchase price.

Common uses for cash-out proceeds in San Antonio's industrial market include funding tenant improvements to attract higher-quality tenants, acquiring adjacent parcels for expansion, upgrading building systems to meet modern logistics requirements, or making down payments on additional industrial acquisitions.

Industrial refinance rates in San Antonio's core submarkets range from 6.2% to 6.8% for multi-tenant properties. Single-tenant buildings with long-term leases to creditworthy tenants may qualify for even better terms, particularly if the lease term extends well beyond the loan maturity date.

What Role Does Workforce Housing Stabilization Play in Refinancing?

Workforce housing, typically defined as Class B and Class C multifamily properties serving households earning 60% to 120% of area median income, represents a growing niche in San Antonio's refinancing landscape. With an average annual wage of $67,320 in the metro area and employment growth driven by construction, healthcare, education, and government sectors, demand for affordable rental housing remains strong.

The lower-tier rental segment in San Antonio has demonstrated resilience that premium properties have not, recording a 1.1% rent increase while luxury communities saw rents decline 3.2%. This stability makes workforce housing properties attractive to lenders and positions them well for refinancing.

Borrowers who acquired distressed or underperforming workforce housing properties using bridge financing and have since improved occupancy and rent collections are prime candidates for bridge-to-permanent refinancing. By converting to a permanent loan with a lower rate and longer amortization, owners can significantly improve cash flow and position the property for long-term hold.

The key metrics lenders evaluate for workforce housing refinancing include trailing 12-month net operating income, occupancy trends over the past six months, capital expenditure history, and the property's competitive position within its submarket. Properties showing consistent 90%+ occupancy with stable or growing rents will access the best refinancing terms.

What Documents and Qualifications Do You Need for a San Antonio Commercial Refinance?

Preparing a complete loan package upfront accelerates the refinancing process and signals to lenders that you are a serious, organized borrower. Here is what San Antonio commercial lenders typically require.

Property-level documents include a current rent roll, trailing 12-month operating statements, the most recent property tax bill, copies of all leases, a schedule of any planned or recent capital improvements, and a current Phase I environmental report (for industrial properties).

Borrower-level documents include two to three years of personal and entity tax returns, a personal financial statement, a schedule of real estate owned, bank statements covering two to three months, and your entity's operating agreement or articles of incorporation.

Qualification benchmarks vary by loan type, but general guidelines for San Antonio commercial refinances include a minimum DSCR of 1.20x to 1.25x, maximum LTV of 70% to 80% (depending on property type), a minimum credit score of 660 to 680 for the guarantor, and minimum property occupancy of 85% to 90% for stabilized assets.

Starting the document collection process early is critical. Many San Antonio borrowers lose valuable rate-lock opportunities because their financials are not organized when attractive terms become available.

What Does the San Antonio Commercial Refinance Process Look Like Step by Step?

The refinancing timeline for San Antonio commercial properties typically runs 45 to 90 days from application to closing, depending on loan type and complexity. Agency loans (Fannie Mae/Freddie Mac) and HUD loans tend to take longer, while bank and credit union refinances can close faster.

The process begins with a pre-qualification review where the lender evaluates your property's financials, your borrower profile, and current market conditions to provide a preliminary term sheet. This stage usually takes one to two weeks.

Once you accept the term sheet, the lender orders third-party reports including an appraisal, environmental assessment, and property condition report. In San Antonio, appraisals for commercial properties typically take two to four weeks depending on property complexity and appraiser availability.

During underwriting, the lender performs a deep analysis of property cash flow, market comparables, and borrower creditworthiness. This phase runs two to four weeks concurrently with the third-party report process.

After underwriting approval, the loan documents are prepared and reviewed by both parties' attorneys. Closing can be scheduled within one to two weeks of document preparation, with funding typically occurring within a few business days of closing.

How Can You Maximize Your San Antonio Commercial Refinance Outcome?

Several strategies can help San Antonio property owners secure the most favorable refinancing terms.

Improve your NOI before applying. Even modest increases in net operating income through rent adjustments, expense reductions, or occupancy improvements can meaningfully impact your loan terms. A property generating $500,000 in NOI will qualify for a larger loan at better rates than the same property at $450,000.

Lock your rate strategically. Treasury rates have fluctuated significantly over the past year. Work with your lender to understand rate lock options and timing. Some lenders offer forward rate locks that allow you to secure today's rate for a closing 60 to 90 days out.

Negotiate prepayment penalties. If your existing loan carries a prepayment penalty (yield maintenance, defeasance, or step-down), factor this cost into your refinance analysis. In some cases, waiting a few months for the penalty to decrease can improve your overall economics.

Consider portfolio refinancing. If you own multiple commercial properties in San Antonio, refinancing them together as a portfolio can provide better terms than individual loans. Lenders may offer rate discounts for larger loan balances and cross-collateralized structures.

Work with a lender who knows San Antonio. Local market knowledge matters. A lender familiar with San Antonio's submarkets, military-driven demand patterns, and growth corridors can more accurately assess your property's value and performance potential.

Ready to explore your refinancing options? Contact our team to discuss your San Antonio commercial property and receive a customized rate quote.

Frequently Asked Questions About San Antonio Commercial Refinance Loans

What is the minimum loan amount for a commercial refinance in San Antonio?

Most conventional commercial lenders set minimum loan amounts at $500,000 to $1 million. SBA 504 refinances may be available for smaller amounts starting around $250,000. For loans under $500,000, local banks and credit unions in the San Antonio market are typically the best options, as they offer more flexibility for smaller commercial properties.

How long does a commercial refinance take to close in San Antonio?

The typical timeline is 45 to 90 days from application to funding. Bank and credit union refinances tend to close in 45 to 60 days, while agency loans (Fannie Mae/Freddie Mac) take 60 to 75 days. HUD/FHA refinances, which offer the lowest rates for multifamily, can take 90 to 120 days due to additional government processing requirements.

Can I do a cash-out refinance on my San Antonio commercial property?

Yes. Most commercial lenders allow cash-out refinancing up to 70% to 75% of the property's current appraised value. Multifamily properties may qualify for up to 80% LTV on cash-out transactions through agency lenders. The cash-out proceeds can be used for any business purpose, including property improvements, debt payoff, or new acquisitions.

What DSCR do I need to qualify for a commercial refinance?

Most lenders require a minimum debt service coverage ratio of 1.20x to 1.25x, meaning your property's net operating income must be at least 120% to 125% of the annual debt service payments. Properties with DSCR above 1.40x will qualify for the best rates and terms. Use our DSCR calculator to determine your property's current ratio.

Are there prepayment penalties on San Antonio commercial refinance loans?

Prepayment structures vary by loan type. Bank loans may have step-down penalties (such as 5-4-3-2-1) or flat penalties. CMBS loans typically require defeasance or yield maintenance. Agency multifamily loans often include declining prepayment penalties. Your existing loan's prepayment terms are a critical factor in timing your refinance, so review your current note carefully before proceeding.

Should I refinance my San Antonio commercial property now or wait?

The decision depends on your current rate, remaining loan term, and prepayment costs. If you are paying 7%+ on a loan originated in 2022 or 2023, refinancing at today's rates (5.18% to 6.8% depending on asset class) could generate significant savings even after accounting for closing costs and any prepayment penalty. However, if your existing rate is already competitive and you face steep prepayment penalties, waiting may be more cost-effective. Reach out to our team for a break-even analysis specific to your situation.