If you want to understand why South Florida deal volume cooled in 2026 despite strong demand, stop looking at the buildings and look at the debt. Demand never left — borrowing just got expensive in 2023–24, and a lot of buyers simply waited. The reason I am more optimistic now is that the debt picture is finally moving the right way. Here is where commercial real estate financing actually stands as of August 2026, in plain terms.
Rates are coming off the highs
After the Fed’s late-2025 cuts, commercial mortgage rates eased roughly 15–30 basis points across the major lender types over the past 90 days, and the consensus expects one more cut later in 2026. A snapshot of starting rates as of early August:
| Loan type | Approx. starting rate (Aug 2026) |
|---|---|
| Multifamily (over $6M) | ~5.70% |
| Apartment (under $6M) | ~6.11% |
| SBA 504 (owner-occupied) | ~6.03% (blended ~6.3%) |
| CMBS / conduit | ~6.63% |
| SBA 7(a) (variable) | Prime + 2.25–2.75% (~9–9.5%) |
Treat those as indications, not quotes — your real rate turns on the asset, the leverage, the tenancy, and you as the sponsor. But the direction is the point, and the direction is down.
If your business will occupy the space, you have an edge right now
This is the advice I repeat most often to business owners: if you are going to occupy the building, SBA 504 is hard to beat in this environment. The CDC piece — 40% of the loan — is fixed near the ~5.8% debenture rate for 25 years, and you can put down as little as 10%, versus 20–30% conventional. Low money down plus a fixed long-term rate, while rates are still elevated, is a genuine advantage. I walk through the mechanics in the financing guide.
If you are an investor, watch the coverage ratio
For income property, the number lenders fixate on is the debt-service coverage ratio — generally 1.25 or higher, meaning the property’s income covers the new payment with a 25% cushion. When rates are high, that coverage test, not loan-to-value, is usually what caps your loan. DSCR loans (which qualify on the property’s income rather than your personal returns) and short-term bridge debt are what is carrying investors until permanent rates settle. Background: DSCR vs. debt yield and LTV vs. LTC.
What this means for your next deal
Cheaper debt brings buyers back — that is the whole mechanism. The capital that sat out 2025–26 returns as rates fall, which means the window of light competition is quietly closing. If you can underwrite a deal that works today, you are bidding against fewer people than you will be in a few quarters. Sellers, expect demand to firm as financing gets cheaper.
Run your numbers: the free borrowing-power calculator and mortgage & amortization calculator let you pressure-test a deal against today’s rates in seconds.
Weighing a purchase or refinance? Send me the deal and I will help you see what pencils, then point you to the right lender in my network.
