What DFW Commercial Financing Actually Costs Right Now (Q2 2026)

Anyone shopping commercial financing in Dallas-Fort Worth wants the same thing up front: a real rate number. Most broker websites dodge the question and tell you to call for a quote. Here is what we are actually seeing on term sheets across DFW right now, product by product, as of early Q2 2026. These are the ranges real lenders are quoting on live files, not marketing copy, not "as low as" teasers.

The macro environment in three numbers

Commercial real estate rates do not move with the Fed funds rate the way most borrowers assume. Long-term fixed-rate commercial debt prices off the 10-year Treasury yield. Floating-rate bridge and construction debt prices off SOFR. The Fed's overnight rate matters indirectly, but the more relevant numbers to watch are the 10-year Treasury and the SOFR curve.

As of early April 2026, the Fed funds effective rate sits at 3.50% to 3.75% after the January hold. The 10-year Treasury yield has been trading in a 4.00% to 4.25% range. SOFR is in the 4.25% to 4.50% range. WSJ Prime, which drives SBA 7(a) and most bank commercial loans, is at 7.50%. Those four numbers set the floor for every rate in the table below. The 10-year Treasury is the one to watch: every 25 basis point move in the 10-year shows up in long-term fixed-rate quotes within 24 hours.

What DFW commercial loans actually cost right now

Why multifamily rates are the cheapest in the market

The cheapest long-term fixed-rate debt in commercial real estate is still agency multifamily. Fannie Mae DUS and Freddie Mac Optigo are quoting stabilized apartment deals in the 5.16% to 5.60% range depending on leverage, term, and asset quality. HUD 223(f) prices even tighter on long-hold assets, though the six to nine month closing timeline keeps most sponsors on agency execution.

The rate spread exists because of federal backstopping. Fannie, Freddie, and HUD are government-sponsored enterprises, and their debt trades at near-Treasury spreads in the mortgage-backed securities market. That cost advantage gets passed to borrowers. No other commercial asset class has this structural pricing advantage, which is the main reason DFW multifamily remains the deepest lender market in the country regardless of where rates sit.

What about SBA 504 and 7(a) rates?

SBA 504 debenture rates reset monthly via a bond sale and are currently in the 5.65% to 6.50% range depending on the 20 or 25 year tenor. The CDC portion carries this fixed rate for the full life of the loan, which is rare in commercial real estate. The bank first-lien piece carries its own rate, typically with a 5 or 10 year reset, which blends into a total all-in rate that usually beats conventional commercial mortgages on the same building.

SBA 7(a) is variable and tied to WSJ Prime. With Prime at 7.50% and the typical 7(a) spread of 1.5% to 3.0%, real rates on 7(a) deals are currently in the 9.00% to 10.50% range. That looks expensive next to 504, but 7(a) is usually the right structure when the deal is under $1.5M or when you need working capital, equipment, and real estate wrapped into one loan. We cover the decision in detail in SBA 504 vs SBA 7(a).

Life-co, CMBS, and bridge rates

Non-multifamily stabilized debt (industrial, retail, office, hospitality) prices through life insurance companies and CMBS conduits. Life-co is currently quoting the tightest spreads at 5.80% to 6.50% on trophy industrial and strong grocery-anchored retail. CMBS sits wider at 6.20% to 7.00% on similar assets but accepts a broader range of property types and sponsor profiles.

Bridge debt is the most expensive category in the table and also the fastest closing. Balance-sheet bridge lenders are quoting 8.50% to 10.50% on value-add multifamily and similar transitional deals. Rate is SOFR plus a spread of 350 to 550 basis points depending on leverage, sponsor experience, and the credibility of the exit strategy. We dig into when bridge pricing makes sense in Bridge Loan vs Permanent Loan.

When will commercial rates move from here?

Two things to watch. First, the 10-year Treasury. Every material move in the 10-year translates to long-term fixed-rate commercial loans within days. The futures market is currently pricing in slightly lower yields by the end of 2026, which would drop multifamily and life-co rates modestly, but by how much is genuinely uncertain. Second, Fed leadership. Chair Powell's term ends in May 2026 and the incoming Chair is expected to be marginally more dovish. That could accelerate rate cuts in the second half of 2026, though the direct impact on commercial rates will come through the 10-year, not the Fed funds rate itself.

Why are commercial rates so much higher than residential mortgage rates?

Three structural reasons. First, commercial lenders do not have the same federal backstop that conforming residential mortgages enjoy (and even agency multifamily is slightly wider than a 30-year fixed conforming loan). Second, commercial loans are larger and more bespoke, which raises per-loan origination and servicing costs. Third, commercial real estate is more volatile than owner-occupied residential, so the risk premium is higher. Even agency multifamily, with the thinnest risk premium in commercial lending, prices 75 to 150 basis points wider than a 30-year fixed residential mortgage.