Commercial Real Estate Loans in Texas: Complete 2025 Guide for Investors
Texas in 2025 continues to stand out as a powerhouse for commercial real estate investors, offering both rapid growth and diverse property opportunities. Whether you’re targeting high-rise office towers in Houston, mixed-use complexes in Dallas, or retail developments in San Antonio, understanding the landscape of commercial real estate loans in Texas is a crucial first step for any investor in 2025.
- Commercial Real Estate Loans in Texas: Complete 2025 Guide for Investors
- Texas Commercial Real Estate Market Overview
- Popular Texas Commercial Loan Types
- Key Lenders for Texas Commercial Property Loans
- How Commercial Mortgages Work in Texas (2025 Edition)
- Step-by-Step Texas Commercial Mortgage Application Process
- Success Stories: Texas Commercial Mortgage Closings in 2025
- Tips for Securing the Best Texas CRE Loan in 2025
- Frequently Asked Questions
- Conclusion: Unlock Texas CRE Opportunity in 2025
Texas Commercial Real Estate Market Overview
With steady population growth, significant in-migration, and continued business expansion, Texas cities are among the nation’s most active for commercial real estate activity. As of early 2025:
- Dallas-Fort Worth: Leading in industrial and logistics, with major redevelopment in Uptown, Frisco, and Plano.
- Houston: Experiencing a resurgence in Class A office space and medical centers in The Galleria, Midtown, and the Texas Medical Center districts.
- Austin: Tech sector is fueling demand in East Austin and The Domain for mixed-use and multifamily projects.
- San Antonio: Growth in hospitality and retail in Pearl District and Stone Oak.
- El Paso: Regional retail corridors and warehousing are attracting cross-border investment.
- Fort Worth: Key redevelopment around Stockyards District and AllianceTexas.
- Corpus Christi: Harbor revitalization and logistics-focused commercial properties.
- Waco: Demand for student housing and healthcare properties near Baylor University and medical corridors.
Popular Texas Commercial Loan Types
This guide focuses on Commercial Mortgages for stabilized income-producing properties—ideal for office, industrial, retail, and self-storage deals throughout Texas in 2025. Other available financing options include:
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DSCR Rental Loan
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SBA 7(a) Loan
- Lower down payments vs banks
- Long amortization improves cash flow
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Bridge Loan
- Close quickly — move on opportunities
- Flexible underwriting
- Great for value-add or transitional assets
SBA 504 Loan
- Low fixed rates through CDC portion
- Great for construction, expansion, fixed assets
- Often lower down payment than bank loans
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- Bridge Loans
- Construction Loans
- Multifamily Financing
Key Lenders for Texas Commercial Property Loans
Several national and regional lenders offer competitive loan programs tailored for Texas real estate investors. Here are five actively funding commercial mortgages in 2025:
- Frost Bank — Texas-headquartered, specializes in office, medical, and mixed-use property loans ($500K to $15M+).
- Comerica Bank — Strong metro presence with flexible fixed and floating-rate options.
- Veritex Community Bank — Mid-sized commercial loans with streamlined approvals ($1M to $10M).
- Chase Commercial Banking — Full-service, national platform with deep Texas market knowledge.
- Texas Capital Bank — Custom commercial mortgage products for retail, industrial, and hospitality.
How Commercial Mortgages Work in Texas (2025 Edition)
Most Texas commercial mortgages offer the following terms:
- Loan Amounts: $500,000 to $50,000,000+ (most mid-market deals $1M–$5M)
- Loan-to-Value (LTV): Up to 75% for stabilized properties. Some lenders allow up to 80% for multifamily.
- Interest Rates: Fixed rates from 6.25%–7.75%. Floating rate spreads tied to SOFR or Prime + 2.0%–3.5%.
- Amortization: Typically 20–30 years, with 5–10 year fixed term and balloon payment or reset.
- Recourse: Both recourse and non-recourse options available; larger loans lean non-recourse.
- Prepayment: Yield maintenance or step-down structures.
Texas investors frequently use commercial mortgages for office buildings in Dallas, retail centers in Houston, or industrial warehouses along the I-35 corridor.
Step-by-Step Texas Commercial Mortgage Application Process
- Initial Consultation: Connect with a Texas-licensed commercial mortgage broker or lender to discuss your project and financing goals.
- Loan Request Submission: Provide property details, borrower financials, leases, rent roll, and photos.
- Pre-Approval & Term Sheet: Lender issues indicative terms outlining loan amount, rate, amortization, and fees.
- Due Diligence: Full underwriting—appraisal, environmental report (Phase I), title review, credit/background checks, and cash flow analysis.
- Commitment Letter: Agree to finalized terms and deposit any due diligence fees.
- Legal and Documentation: Attorneys draft and review loan docs, including mortgage/deed of trust, assignments, and guarantees as required.
- Closing: Fund transfer, loan recording, and property ownership updates. Investor assumes new debt service obligations per the agreed schedule.
Success Stories: Texas Commercial Mortgage Closings in 2025
- Houston Office Redevelopment: A Houston-based investment group secured a $3.2 million commercial mortgage from Texas Capital Bank—7.2% fixed for 10 years, 25-year amortization—to reposition a medical office in The Galleria. The loan-to-value was 72% with full non-recourse structure. Improved leasing brought property value up 20% within the first year.
- Dallas Industrial Portfolio: A DFW logistics developer refinanced three warehouses with a $5 million Frost Bank commercial mortgage (6.65% fixed, 10-year term). Non-recourse, 75% LTV, interest-only for year one. Portfolio occupancy jumped from 70% to 92% within 18 months.
- Austin Retail Strip Center: Private investors acquired a fully leased shopping center with a $1.1 million Veritex Community Bank loan—7.5% fixed for 7 years, 30-year amortization, closed in under 45 days. Strategic lease renewals drove a 17% NOI increase after 14 months.
- San Antonio Hospitality: Boutique hotel near Pearl District was refinanced via Comerica Bank, locking $2.8 million at 7.0% fixed, 20-year amortization, with a 7-year balloon. Lender flexibility allowed for parking deck collateral inclusion.
Tips for Securing the Best Texas CRE Loan in 2025
- Work with experienced, Texas-focused brokers and lenders familiar with local nuances.
- Prepare a detailed business plan: market comps, lease structures, capital plans.
- Maintain strong personal and business credit.
- Organize updated property financials and legal documentation.
- Be open to multiple lending structures—banks, credit unions, and specialty finance companies.
Frequently Asked Questions
What types of commercial properties are easiest to finance in Texas in 2025?
Multifamily, stabilized industrial, and grocery-anchored retail are the most favored property types among Texas lenders.
How long does closing take?
Bank commercial mortgages typically close in 45–90 days. Quick-close programs (bridge/agency loans) can close in as little as 30 days.
Can investors from outside Texas secure property loans?
Yes, both in-state and out-of-state investors are eligible, provided they meet the lender’s underwriting criteria.
Conclusion: Unlock Texas CRE Opportunity in 2025
With robust growth across major markets and an active lending environment, Texas remains one of the best states for commercial real estate investment in 2025. By understanding the evolving commercial mortgage landscape and leveraging local lender expertise, investors can structure winning deals in Dallas, Houston, Austin, San Antonio, and beyond. Whether you’re new to CRE or scaling your portfolio, start your financing journey early and work with a proven Texas commercial mortgage professional.
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