Commercial Real Estate Loans in Texas: Rate Trends and Loan Structure Comparisons in 2026

Overview of the Texas Commercial Real Estate Market in 2026

Texas is a hot spot for commercial real estate in the U.S., and that trend continues into 2026. The state's size, population growth, business policies, and bustling economy make it an attractive place to invest in property.

According to research from CBRE, a commercial real estate services firm, the Dallas–Fort Worth outlook for 2026 could bring lower interest rates for new office construction. The Houston market may continue to grow and see a spike in investment activity.

CBRE research also shows that the Austin–San Antonio region is emerging as one of the nation's top markets for data centers.

These market trends highlight why many commercial real estate investors and businesses are flocking to the Lone Star State. As demand continues to rise, commercial real estate loans in Texas are a viable option for businesses looking to grow and expand.

Types of Commercial Real Estate Loans in Texas

If you're looking to finance a commercial property, you have various options to consider. Here we cover some common types of commercial real estate loans in Texas.

• Commercial mortgage loans: Everyday homebuyers typically use a conventional mortgage to buy a home. Business owners, on the other hand, can use commercial mortgage loans to finance real estate for their business, such as an office building, retail space, or warehouse.

• Construction loans: If you want to build something from the ground up, construction loans can provide the financing you need.

• SBA 7(a) loans: The SBA 7(a) loan program can provide financing for purchasing, improving, or refinancing real estate. The maximum loan amount is $5 million, and interest rates can be either fixed or variable.

• SBA 504 loans: The SBA 504 loan operates a bit differently, as it's used for major fixed assets and offers long-term fixed-rate financing. Under a 504 loan, borrowers can get capital to purchase new facilities, land, or existing buildings.

Whether you want to buy or renovate a building, knowing your financing options can help you find something that meets your unique needs. Commercial real estate loans in Texas can come in different forms, ranging from commercial mortgage loans to SBA loans. In many cases, the property secures the loan as a form of collateral.

When reviewing loan options, consider your business needs, interest rates, and repayment terms. You can research major financial institutions as well as local Texas-based lenders, including Texas Bank, Bank of Texas, Texas Security Bank, and Bank of South Texas.

Online funding providers like Biz2Credit can also provide commercial real estate loans. Investing your time now comparing lenders can pay off down the line.

Current 2026 Rate Trends on Real Estate Loans in Texas

We're still in the first quarter of 2026 and there are signs that commercial real estate interest rates in Texas could stabilize and potentially decrease.

The Impact of the Federal Reserve

While interest rates remained elevated across the board when the Federal Reserve increased the federal funds rate several years ago, the agency recently had three consecutive rate cuts to close out 2025.

Other Benchmark Rates

Although banks use the federal funds rate to help set the prime rate (which is typically 3% higher than the current federal funds rate), commercial real estate loan rates aren't directly tied to these benchmarks.

Instead, commercial real estate loan rates are generally tied to the Secured Overnight Financing Rate (SOFR). Commercial loan rates are often a benchmark rate like the SOFR plus the spread, which is what the lenders add to the rate to cover costs.

Local Rates

While these rates can impact lenders nationwide, local lenders in each state have their own risk pricing assessment.

First, it's important to note that commercial real estate loan rates depend on various factors. Borrower profile, loan amount, time in business, and the lender can all impact potential rates. So, no two rates are the same and can vary by borrower, lender, and timeframe.

Borrowers concerned with potential rate increases can see if lenders offer a rate lock. That can insulate them from market volatility. Because of the robust economic activity in Texas, it may be possible to get more competitive rates than the national average.

Repayment Term

The repayment term and loan structure can also impact interest rates. If you have a 5-year fixed term, you could qualify for lower interest rates compared to a 10-year fixed term. The longer the term, the more risk for the lender, so that's baked into the interest rate.

Be aware that if you have a 5-year term with a 30-year amortization schedule, you may pay the same monthly payments for five years and then have a balloon payment. However, the terms may vary depending on various factors.

Do Your Due Diligence

Ultimately, it's key for borrowers to research lenders, loan types, and interest rates. Review loan structures, amortization schedules, and loan amount minimums and maximums. Having clarity around your financing options can ensure you're making a smart investment in your business.

What Borrowers Should Consider with a Commercial Property Loan in Texas

Commercial loans in Texas can be a valuable financing tool for your business. You can build or renovate to grow your company and pay it back over time. But before you fill out a loan application, here are some key things borrowers should consider.

• Lender: Commercial real estate financing is a unique product, so you want to work with a lender who is very familiar with CREs. Check their website and online reviews on the Better Business Bureau (BBB) and Trustpilot.

• Loan amount: Research the maximum loan amount to ensure it covers your purchase or renovation costs.

• Repayment term: Review repayment term options when comparing commercial real estate loans in Texas. A longer repayment term can reduce monthly payments but hike up total interest costs.

• Fees: Be sure to factor in potential origination and appraisal fees before making a loan decision.

• Credit profile: Check your personal and business credit before applying for any business loans.

• Cash flow: Consider your monthly payments and the overall impact on your cash flow.

• Business goals: Understand how you will use commercial real estate loans to invest and grow your business based on your goals.

Final Thoughts

Whether you're a Texas business owner looking to buy commercial property or renovate your existing building, commercial property loans can help fund your project while spreading out costs over time. Paying upfront could be prohibitive and delay the project.

Given the construction boom in the state, Texas business owners have various options for commercial real estate loans with competitive rates. Just be aware that interest rates fluctuate based on broader economic conditions, such as inflation and Federal Reserve decisions on monetary policy.

Additionally, every borrower has a unique risk profile based on credit history, revenue, cash flow, and time in business. As a result, interest rates on commercial real estate loans can vary widely from borrower to borrower. Taking the time to research your options and compare lenders can help you find the best rates for your situation.