Commercial Real Estate Loans in Ohio 2025 for Investors Now

Commercial Real Estate Loans in Ohio: 2025 Investor Guide

Ohio’s diverse cities and stable economy make it an attractive environment for commercial real estate (CRE) investors in 2025. Whether you’re financing a downtown Columbus office building, a Dayton industrial property, or a Cleveland multifamily portfolio, understanding the latest lending opportunities and requirements is essential. This guide delivers an in-depth look at commercial mortgages in Ohio, including rates, underwriting trends, top local lenders, and step-by-step processes for a successful CRE investment.

Ohio Commercial Real Estate Market Overview (2025)

Ohio’s economy is forecast to grow moderately in 2025, with a steady demand for commercial space across several industries. The state’s strategic location and transportation infrastructure, especially in cities like Columbus, Cleveland, and Cincinnati, continue to attract both in-state and out-of-state investors seeking stable returns and a resilient tenant base.

• Columbus Arena District: Booming mixed-use development, office, and hospitality projects.
• Downtown Cleveland: Major investments in retail and office tower renovations.
• The Cincinnati Banks: High-value waterfront commercial and multifamily complexes.
• Dublin Bridge Street District: Rapidly expanding tech and medical office hub.
• Dayton Innovation Corridor: Strong industrial and logistics growth for 2025.
• Toledo Warehouse District: Popular for warehouse conversions and CRE investments.
• Akron Biomedical Corridor: Expanding medical offices and research facilities.

Types of Commercial Real Estate Loans in Ohio (2025)

Focus: Commercial Mortgages

This year, Ohio investors have unprecedented access to tailored commercial mortgage products. These permanent loans come with fixed or variable rates, generous amortization periods, and terms suitable for a range of asset types.

Need capital? GHC Funding offers flexible funding solutions to support your business growth or real estate projects. Discover fast, reliable financing options today!

Test Your Expertise: The Complexities of the 1031 Exchange

As a sophisticated real estate investor, you understand that the 1031 Exchange is a cornerstone strategy for tax deferral and wealth accumulation. But beyond the basics, the intricacies of the 1031 Exchange rules can pose significant challenges. This quiz is designed to test your in-depth knowledge and highlight critical nuances that separate casual investors from true experts in 1031 Exchange transactions.

Instructions: Choose the best answer for each question.

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Question 1: Understanding "Like-Kind" in a 1031 Exchange

Which of the following scenarios most likely qualifies as a like-kind property exchange under IRS Section 1031, allowing for 1031 Exchange tax deferral?

a) An investor exchanges a portfolio of publicly traded REIT stocks for a commercial retail building. b) An investor exchanges their primary residence, used for personal living for 15 years, for a duplex intended for rental income. c) An investor exchanges raw land held for appreciation in Texas for a stabilized apartment complex in Florida, both held for investment. d) An investor exchanges a classic car collection (personal property) for a single-family rental home (real property).

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Question 2: Navigating the 45-Day Identification Period for a 1031 Exchange

An investor sells a multi-family property on June 15th for a 1031 Exchange. According to the strict timelines, by what date must they identify their replacement properties to comply with the 1031 Exchange requirements?

a) July 30th of the same year, as the 45-day period includes weekends and holidays. b) August 29th of the same year, allowing for an extra 45 days if needed. c) December 12th of the same year, aligning with the 180-day completion period. d) January 1st of the following year, if they plan to file for an extension.

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Question 3: The Role of a Qualified Intermediary (QI) in a 1031 Exchange

Why is the engagement of a Qualified Intermediary (QI) absolutely critical for the validity of a 1031 Exchange?

a) The QI provides investment advice and helps the investor choose the best replacement property for their 1031 Exchange strategy. b) The QI acts as a liaison with the IRS, directly negotiating tax liabilities related to the 1031 Exchange process. c) The QI holds the proceeds from the relinquished property's sale, preventing the investor from having "constructive receipt" of funds, which would invalidate the 1031 Exchange. d) The QI provides legal and tax advice to ensure the 1031 Exchange is perfectly compliant

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Question 4: Understanding "Boot" and its Impact on a 1031 Exchange

An investor sells a commercial building with $500,000 in equity for a 1031 Exchange. They purchase a replacement property for $450,000, effectively reducing their debt by $50,000. What is the tax implication of this scenario within the 1031 Exchange framework?

a) The entire 1031 Exchange is disqualified because the investor "traded down" in value. b) The $50,000 in reduced debt is considered "boot" and will be immediately taxable as partial gain in this 1031 Exchange. c) There are no immediate tax implications, as the primary goal of the 1031 Exchange is only about the "like-kind" nature of the properties. d) The investor can defer the $50,000 as long as they pay off other personal debts with the funds, still qualifying for a full 1031 Exchange.

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Question 5: Advanced 1031 Exchange Strategies & Flexibility

An investor aims to sell a highly appreciated single-tenant retail property and replace it with multiple smaller, diversified multi-family units to spread risk. Which of the following 1031 Exchange identification rules best allows for this diversification strategy, maintaining eligibility for a 1031 Exchange?

a) The "Three Property Rule," where the investor can identify up to three properties of any value, regardless of the relinquished property's value, for their 1031 Exchange. b) The "200% Rule," allowing identification of any number of properties, provided their aggregate fair market value does not exceed 200% of the relinquished property's value for the 1031 Exchange. c) The "95% Rule," which states that if more than three properties are identified, the investor must acquire at least 95% of the aggregate value of all identified properties to qualify for the 1031 Exchange. d) All of the above are valid identification rules within a 1031 Exchange, offering flexibility for various investment strategies.

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The Ultimate DSCR Loan for Rental Property Quiz

Are you looking to expand your real estate investment portfolio? A DSCR loan might be the perfect tool to help you achieve your goals without relying on traditional income documentation. Test your knowledge with this quiz to see if you're ready to master the intricacies of a DSCR loan for rental property.

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Page 1 of 5

What is the primary factor a lender considers when approving a DSCR loan for rental property? A) The borrower's personal income and debt-to-income (DTI) ratio. B) The borrower's credit score and employment history. C) The property's potential rental income compared to its monthly expenses, known as the Debt Service Coverage Ratio. This is the key metric for a DSCR loan for rental property eligibility and approval. D) The total value of the borrower's existing investment properties and personal savings.

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How does a DSCR loan for a rental property differ from a conventional mortgage for a personal residence? A) A conventional mortgage requires a DSCR calculation, whereas a DSCR loan for a rental property does not. B) A DSCR loan for a rental property primarily focuses on the property's cash flow, allowing investors to qualify without traditional income verification, unlike a conventional mortgage which is based on personal income and liabilities. C) A conventional mortgage has a higher interest rate and stricter requirements than a DSCR loan for a rental property. D) A DSCR loan for a rental property is only available for commercial properties, not residential rental properties.

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What is an ideal Debt Service Coverage Ratio (DSCR) for a lender when evaluating a DSCR loan for a rental property? A) A DSCR of 0.75, indicating the property generates 75% of the income needed to cover its debt service. B) A DSCR of 1.00, meaning the property's income exactly equals its debt service. C) A DSCR of 1.25 or higher, as this indicates the property's income is greater than its expenses, making it a strong candidate for a DSCR loan for a rental property and providing a buffer for unexpected costs. D) A DSCR of 2.00, which is the standard minimum for all investment properties, regardless of location or market conditions.

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Which of the following expenses are typically included in the calculation of the Debt Service Coverage Ratio for a DSCR loan for a rental property? A) The property's mortgage payment (principal and interest), property taxes, and insurance, which are the core components used to determine if the property can support the debt. B) The property's mortgage payment, property taxes, insurance, and the borrower's personal credit card debt. C) The property's monthly rental income and all utility bills, regardless of who pays them. D) Only the principal and interest payment of the loan, as other expenses are not considered in a DSCR loan for a rental property calculation.

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Who would most benefit from using a DSCR loan for a rental property? A) A first-time homebuyer with a W-2 salary and a high debt-to-income ratio, who is looking to purchase a primary residence. B) A seasoned real estate investor with multiple properties who wants to expand their portfolio without using personal income to qualify, making a DSCR loan for a rental property the ideal financing solution for their needs. C) Someone looking to finance a primary residence with a low down payment and a government-backed loan. D) An individual with a very low credit score who cannot qualify for any other type of loan.

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• Permanent Commercial Mortgages: Long-term fixed or floating rate financing for stabilized office, retail, multifamily, or industrial properties. Terms typically range from 5 to 25 years.
• SBA 504 & 7(a) Loans: Small business-friendly mortgages for owner-occupied properties and expansions in Ohio’s growing business corridors.
• Portfolio Loans: Flexible options for investors holding several Ohio CRE assets or mixed-use portfolios.
• CMBS Loans: Attractive for large assets ($2M+) in core urban centers due to non-recourse structure and favorable rates.

Key Commercial Lenders in Ohio (2025)

Partnering with Ohio’s top CRE lenders connects you to competitive rates, local expertise, and efficient underwriting tailored to state trends:

• Huntington National Bank – Headquartered in Columbus, offers comprehensive CRE solutions statewide.
• KeyBank Real Estate Capital – Cleveland-based lenders specializing in office, retail, and multifamily projects.
• First Financial Bank – Excellent for SBA loans and traditional CRE mortgages in southwestern Ohio.
• Fifth Third Bank – Robust bridge and construction-to-perm loan products, plus strong local support.
• Cedars Commercial Lending – Local boutique lender with expedited CRE loan approvals and tailored underwriting.

Ohio Commercial Real Estate Mortgage Rates & Terms (2025)

After recent economic stabilization, Ohio commercial rates remain competitive:

✅ Small Business Resources 

• SBA – Small Business Administration
  https://www.sba.gov

• SCORE Mentors (Free Mentoring & Workshops)
  https://www.score.org
• Small Business Development Centers (SBDC)
  https://americassbdc.org

Are You an SBA Real Estate Loan Expert?

Test your in-depth knowledge on using SBA Loans for owner-occupied commercial Real Estate acquisition. These questions delve into the critical details that can impact your business's growth and financial strategy.

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Page 1 of 5

For an existing commercial property, what is the minimum owner-occupancy percentage required for an SBA 7(a) real estate loan, and does this specific scenario qualify?

A manufacturing company plans to acquire a 30,000 sq ft industrial real estate facility using an SBA 7(a) Loan. The company initially needs 18,000 sq ft for its operations and intends to lease out the remaining 12,000 sq ft.

A) 60%; Yes, it qualifies. B) 51%; Yes, it qualifies. C) 75%; No, it does not qualify. D) 60%; No, it does not qualify, as they are leasing out a portion.

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Which of the following sets most accurately represents additional cost categories that can typically be financed within an SBA 504 Loan for a commercial real estate project?

Hint: Beyond the straightforward purchase of a commercial real estate property, an SBA 504 Loan is highly effective for comprehensive projects.

A) Business inventory, working capital, and employee salaries. B) Building renovations, long-term machinery essential to operations within the property, and soft costs like architectural fees. C) Advertising expenses, short-term equipment leases, and utility deposits. D) Personal real estate investments, vehicles for personal use, and stock market investments.

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Between an SBA 7(a) Loan and an SBA 504 Loan, which program generally offers the lowest typical borrower down payment for a commercial real estate acquisition, and what is that common minimum percentage for established businesses?

A highly profitable professional services firm in a competitive market wants to purchase its office real estate with minimal upfront capital. The firm's owners prioritize cash flow and liquidity.

A) SBA 7(a) Loan; 15% B) SBA 504 Loan; 10% C) SBA 7(a) Loan; 5% D) SBA 504 Loan; 20%

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For new construction, what is the initial minimum owner-occupancy percentage required, and what is the maximum timeframe to meet the full owner-occupancy threshold, for an SBA Real Estate Loan?

A fast-growing tech startup plans to construct a new 50,000 sq ft headquarters using an SBA Loan. They will immediately occupy 35,000 sq ft and have a definitive plan to occupy the remaining 15,000 sq ft within two years as their team expands.

A) Initial 51%, full 80% within 5 years. B) Initial 60%, full 80% within 3 years. C) Initial 75%, full 100% within 1 year. D) Initial 51%, full 100% within 2 years.

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What is this crucial requirement, and what fundamental principle does it underscore for the lender?

When securing an SBA Loan for a commercial real estate purchase, principal owners with a 20% or greater ownership stake are almost universally required to provide a specific type of assurance beyond the collateral of the real estate itself.

A) A fixed-rate interest payment commitment, demonstrating long-term stability. B) A first-lien position on all personal assets, ensuring full recovery. C) A personal guarantee, signifying the owners' personal commitment to loan repayment. D) A business plan with projected revenue growth of at least 15% annually, showing future viability.

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Loan rates are influenced by property type, local demand (especially in Columbus and Cincinnati CBDs), borrower profile, and current Fed policy.

Step-by-Step Ohio Commercial Mortgage Application Process (2025)

1. Identify the Asset: Assess your target property—location, class, and expected cash flow. Gather up-to-date rent rolls, appraisals, and performance data.
2. Select the Right Lender: Compare offerings from banks like Huntington or KeyBank, as well as regionally focused lenders. Consider rate, flexibility, relationship, and closing speeds.
3. Submit Pre-Application: Prepare financial statements (2-3 years), tax returns, business plans, and a property pro forma. Many lenders also want personal guarantees for smaller investments.
4. Receive Term Sheet: Negotiate preliminary terms—rate, amortization, prepayments. Scrutinize lender fees, required reserves, and covenants.
5. Due Diligence and Underwriting: The lender will order third-party reports (appraisal, environmental Phase I), review leases, and stress-test cash flows.
6. Commitment & Closing: Upon approval, you execute the loan agreement. Finalize title, insurance, and closing documents. Fund disbursement occurs post-closing.

Ohio CRE Success Stories (2025)

• Columbus Arena District Office Acquisition: An investor secured a $3.8M permanent commercial mortgage from Huntington National Bank at 6.45% fixed for 10 years, refinancing older debt on a stabilized, 40,000 sq ft office space. With improved tenant leases, the property’s DSCR now exceeds 1.35x, supporting sustainable cash flow for the next decade.
• Cleveland Mixed-Use Development: A local developer used a $2.1M CMBS loan provided by KeyBank to finance a mixed-use redevelopment in the Warehouse District. The 10-year, 6.30% non-recourse loan featured 30-year amortization, enabling the repositioning of retail and residential units with minimal equity injection.
• Small Business Expansion in Cincinnati: Through First Financial Bank, an Ohio manufacturer obtained an SBA 504 loan for $690,000 at 6.10%, enabling the purchase of a Dayton industrial flex space. Favorable terms allowed the company to expand operations and add two new shipping lines in 2025.
• Dublin Class A Medical Office: A syndicate led by Fifth Third Bank closed a $4.5M permanent mortgage at 6.60%, fixed for 7 years, on a trophy medical office building in the heart of the Bridge Street District. The project enjoys stable tenancy from expanded regional healthcare groups.

Ohio CRE Market Trends & Outlook (2025)

• Continued flight to quality in downtown Columbus and Cincinnati, with cap rates holding steady at 6-7% for core assets.
• Strong demand for multifamily, medical office, and suburban industrial, particularly near the Dayton Innovation Corridor and Akron’s research hub.
• Increased lending appetite for properties with ESG upgrades or energy-efficient retrofits, particularly from Ohio-based lenders.
• Bridge and construction loans remain viable, but permanent commercial mortgages dominate due to stabilizing rates and leasing trends.

Frequently Asked Questions: Ohio Commercial Real Estate Mortgages (2025)

• What minimum down payment is required? Most lenders require 25-30% equity for investor loans in Ohio, but SBA and select programs can go as low as 15%.
• What is the minimum loan amount? Generally, $500,000 for non-SBA CRE mortgages; SBA loans can start at $250,000 for owner-users.
• Can I finance properties statewide? Yes, though underwriting standards and interest rates may vary by market, especially between major metros and smaller cities like Toledo or Youngstown.
• How fast can I close? Well-prepared borrowers in Ohio can close in 35-60 days; expedited options available for repeat sponsors.

Connect with Ohio CRE Lenders in 2025

✅ Real Estate Investor Resources

• AirDNA (Short-Term Rental Data)
  https://www.airdna.co

• Rentometer (Rent Comps)
  https://www.rentometer.com
• Zillow Research & Data
  https://www.zillow.com/research

DSCR Loan IQ Quiz!

Test your knowledge of Debt Service Coverage Ratio (DSCR) loans!

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Page 1 of 3

What is the primary factor a lender focuses on when approving a DSCR loan for an investment property? a) The borrower's personal debt-to-income (DTI) ratio b) The property's ability to generate enough income to cover its mortgage payments c) The borrower's credit score history over the past 10 years d) The total number of investment properties the borrower already owns

Page 2 of 3

If a property has a Net Operating Income (NOI) of $5,000 per month and its total monthly debt service (PITI) is $4,000, what is its DSCR? a) 0.8x b) 1.0x c) 1.25x d) 5.0x

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Which type of borrower most commonly benefits from using a DSCR loan? a) First-time homebuyers purchasing a primary residence b) Investors with a strong W-2 income and minimal tax deductions c) Self-employed individuals or those with complex income who want to avoid traditional income verification d) Homeowners looking to refinance their primary residence for a lower interest rate

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Ohio’s commercial lending landscape is dynamic, relationship-driven, and offers value to investors from main street to urban high-rises. By choosing the right commercial mortgage structure and lender fit, local and national sponsors can optimize ROI and reduce risk in one of the Midwest’s most vibrant CRE markets.

GHC Funding DSCR LOAN, SBA LOAN, BRIDGE LOAN

Contact GHC Funding Today. Main: 833-572-4327 Email: sales@ghcfunding.com

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