Commercial Real Estate Loans in Indiana: 2025 Investor’s Guide
The Indiana commercial real estate market is surging in 2025, driven by robust industrial expansion, revitalization of downtown business corridors, and expanding suburban demand. As an investor or business owner in Indiana, understanding your commercial loan options is crucial to capitalizing on prime properties in cities like Indianapolis, Fort Wayne, and beyond. This guide breaks down types of commercial mortgages, outlines regional market trends, highlights lenders, and delivers actionable steps to secure the right financing for your next investment.
- Commercial Real Estate Loans in Indiana: 2025 Investor’s Guide
- 2025 Indiana CRE Market Overview
- Commercial Mortgage Options in Indiana (2025 Focus)
- Top Indiana Commercial Real Estate Lenders (2025)
- Step-by-Step: Indiana Commercial Mortgage Application Process
- Success Stories: Indiana CRE Loan Case Studies (2025)
- Indiana CRE Loan Trends & What to Expect in 2025
- Conclusion: Get Your Indiana CRE Loan Approved in 2025
2025 Indiana CRE Market Overview
- Indianapolis Downtown District: Office conversions and tech hub activity are driving demand for flexible commercial spaces.
- Fort Wayne Northside: Industrial/logistics growth fueled by proximity to interstate corridors.
- Evansville Riverfront: Hospitality and mixed-use projects benefiting from regional visitors and economic development incentives.
- South Bend Medical Corridor: Health services expansion and supporting retail/office need creative financing solutions.
- Bloomington College District: Multifamily and student housing see healthy occupancy and rent growth.
- Lafayette Industrial Park: Manufacturing and warehouse acquisitions up due to logistical cost advantages.
- Carmel Midtown: Upscale retail, multifamily, and office properties fuel investor interest in suburban cores.
Commercial Mortgage Options in Indiana (2025 Focus)
This guide focuses on Commercial Mortgages in Indiana for 2025.
1. Conventional Commercial Mortgages
- Loan Amounts: $500,000 – $25 million+
- Uses: Office, retail, industrial, mixed-use, hospitality, some special purpose properties
- Typical Terms: 5, 7, 10, or 15 years with 20-30 year amortization
- Rates (2025): 6.25% – 8.0% fixed or adjustable
- Down Payment: 20-35% (can vary by property and lender)
2. SBA 504 & 7(a) Loans
- Government-backed programs ideal for owner-occupied real estate
- Lower down payments (as low as 10%)
- Below-market, fixed-rate options typically 6.0% – 7.5% (2025 projection)
3. CMBS Loans (Commercial Mortgage-Backed Securities)
- Non-recourse, longer-term, ideal for stabilized assets
- Loan amounts start at $2 million and up
- Relevant for high-traffic, anchor-tenant retail and hospitality sites in Indiana cities
4. Credit Union & Community Bank CRE Loans
- Strong regional presence in Indiana, personalized underwriting, and local knowledge
- Often more flexible for smaller loan requests and unique property types
Top Indiana Commercial Real Estate Lenders (2025)
- Old National Bank – Headquartered in Evansville, strong statewide CRE solutions including bridge and permanent loans.
- Horizon Bank – Notable for multifamily and owner-user commercial loans.
- STAR Financial Bank – Focused expertise on business owner-occupied properties and SBA lending.
- Lake City Bank – Leading provider for industrial, retail, and construction loans across northern Indiana.
- Chase Commercial Banking – National platform with Indiana-based officers, offering large CRE and portfolio loans.
Step-by-Step: Indiana Commercial Mortgage Application Process
- Evaluate Your Investment: Define property type, location, and your financial goals.
- Loan Prequalification: Meet with 1-2 Indiana-based lenders for initial terms based on credit, property, and business plan.
- Gather Documentation:
- Personal and business financial statements
- 3 years business tax returns
- Property data: purchase agreement, rent roll, operating statements
- Third-party reports (appraisal, phase I environmental)
- Submit Formal Application: Complete lender package and address any conditions.
- Underwriting and Offer: Lender reviews risk, property, and your experience. Receive a term sheet or loan commitment letter.
- Due Diligence and Closing: Legal/title work, final appraisal, insurance, and entity docs completed.
- Funding: Funds disbursed at closing, and you take title to your commercial property.
Success Stories: Indiana CRE Loan Case Studies (2025)
- Case Study 1: Office Redevelopment, Indianapolis Corridor
A local investor acquired a vacant office building in downtown Indianapolis for .1 million. Old National Bank provided a .4 million commercial mortgage at 6.8% fixed over a 10-year term, 25-year amortization. The borrower re-tenanted the asset with tech startups, reaching 92% occupancy within 9 months. - Case Study 2: Multifamily Acquisition, Bloomington College District
A partnership refinanced a 40-unit student housing property with Horizon Bank using a ,250,000 loan (75% LTV) at 7.1% fixed, with three years interest-only followed by 27-year amortization. The flexible structure allowed renovations that increased rents 17% in one year. - Case Study 3: Industrial Expansion, Fort Wayne Northside
A growing logistics company secured a $1,800,000 SBA 504 loan (10% down, 25-year fully amortizing rate at 6.3%) to purchase and retrofit a 30,000 sf warehouse. STAR Financial Bank structured the conventional piece, leveraging state and federal incentives. - Case Study 4: Retail Strip Center, Carmel Midtown
An out-of-state sponsor used a $4.9 million CMBS loan provided via Lake City Bank’s conduit platform to acquire and reposition a suburban retail complex. The 10-year, non-recourse loan locked at 7.2% with 30-year amortization, supporting long-term value-add strategy.
Indiana CRE Loan Trends & What to Expect in 2025
- Interest rates: Modest upward pressure, but local banks remain competitive, especially for relationship borrowers.
- Debt service coverage: Underwriting focuses on 1.25x DSCR or higher, particularly for non-owner-occupied properties.
- New construction: Lenders are more selective, preferring experienced sponsors with clear exit strategies.
- Environmental due diligence: State-level incentives available for remediation in opportunity zones and former industrial sites.
- Multifamily demand: Remains strong in proximity to campuses and major employers, with local and national lenders growing allocations.
Conclusion: Get Your Indiana CRE Loan Approved in 2025
With Indiana’s diverse commercial real estate landscape, investors equipped with local market knowledge, an understanding of financing options, and strong underwriting packages are set to seize emerging opportunities. Whether you’re acquiring retail, developing multifamily, or expanding commercial operations, now is the time to engage with experienced Indiana lenders and realize your investment goals in 2025.
Need capital? GHC Funding offers flexible funding solutions to support your business growth or real estate projects. Discover fast, reliable financing options today!
⚡ Key Flexible Funding Options:
GHC Funding everages financing types that prioritize asset value and cash flow over lengthy financial history checks:
DSCR Rental Loan
- No tax returns required
- Qualify using rental income (DSCR-based)
- Fast closings ~3–4 weeks
SBA 7(a) Loan
- Lower down payments vs banks
- Long amortization improves cash flow
- Good if your business occupies 51%+
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
🌐 Learn More
For details on GHC Funding's specific products and to start an application, please visit our homepage:
Ready to Apply?
Start your loan journey by connecting with Indiana’s leading commercial property lenders for tailored solutions and fast, competitive approvals in 2025.
Get a No Obligation Quote Today.
Use these trusted resources to grow and manage your small business—then connect with GHC Funding
to explore financing options tailored to your needs.
GHC Funding helps entrepreneurs secure working capital, equipment financing, real estate loans,
and more—start your funding conversation today.
Helpful Small Business Resources
