Commercial Real Estate Loans in Ohio for 2025 Investors NOW

Commercial Real Estate Loans in Ohio: The Complete 2025 Guide for Investors

Ohio presents a rich landscape for commercial real estate investors in 2025. The Buckeye State offers robust property markets in cities like Columbus, Cincinnati, and Cleveland, as well as dynamic suburban submarkets. Securing the right commercial real estate loans is pivotal to investing successfully, whether you’re buying multifamily apartments, retail centers, office buildings, or embarking on ground-up construction. This in-depth guide explores commercial mortgages in Ohio—covering types of loans, local lender intelligence, prime commercial districts, approval steps, and real-world success stories.

2025 Ohio Commercial Real Estate Market Snapshot

• Steady urban revitalization in Cleveland’s Flats, Columbus’ Short North, and Cincinnati’s Over-the-Rhine fuel demand for commercial properties.
• Office-to-multifamily conversions rise in response to remote work trends, especially in downtown Columbus and Toledo.
• Industrial vacancy at historic lows near Dayton and along the I-75 corridor, driving investor interest in logistics and warehousing.
• Rising lease rates in suburban retail strips, particularly in growing communities like Dublin, West Chester, and Beachwood.

Commercial Mortgages in Ohio: Loan Products Explained

Ohio investors have an array of commercial mortgage options in 2025. Understanding these products is key to structuring successful deals:

• Permanent Commercial Mortgages: Fixed or floating-rate loans for stabilized retail, office, industrial, and mixed-use properties. Typical terms: 5-25 years, amounts from $500,000 to $20M+, LTC/LTV up to 75%.
• Bridge Loans: Short-term, interest-only financing for property repositioning, tenant improvements, or transition to permanent financing. Terms: 12-36 months, LTV up to 75%, fast closing in 2-4 weeks.
• Construction Loans: Ground-up or major renovation funding for developers. Short-term (12-36 months), interest-only, with up to 85% LTC for strong sponsors.
• Multifamily Loans: Agency (Fannie Mae/Freddie Mac), bank, credit union, or debt fund financing for apartment purchases, rehabs, or refinancing. Terms: 5-30 years, competitive rates for stabilized properties.
• SBA 504 & 7(a) Loans: For owner-occupied properties, offering high leverage and favorable terms to qualifying small businesses.

Key Commercial Real Estate Districts in Ohio

Opportunities abound in these Ohio commercial corridors 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!

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.

Start Quiz

Page 1 of 5

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).

Page 2 of 5

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.

Page 3 of 5

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

Page 4 of 5

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.

Page 5 of 5

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.

Ready to send

Please provide your contact information to proceed.

Email Address *

First Name *

Consent *

Yes, I agree with the privacy policy and terms and conditions.

Submit

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.

Start Quiz

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.

Page 2 of 5

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.

Page 3 of 5

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.

Page 4 of 5

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.

Page 5 of 5

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.

Ready to send

Please provide your contact information to proceed.

Email Address *

First Name *

Consent *

Yes, I agree with the privacy policy and terms and conditions.

Submit

1. Short North (Columbus): Mixed-use redevelopment hotspot with heavy foot traffic, art galleries, and trendy retail.
2. Downtown Cleveland (Flats & Gateway District): Office conversions, hotels, and residential infill projects flourish.
3. Over-the-Rhine (Cincinnati): Historic warehouses converted for retail, office, and multifamily use.
4. Polaris (Columbus): Suburban office parks and retail centers near fast-growing tech employers.
5. Easton (Columbus): Major retail/office development with Class A property driving investor demand.
6. Beavercreek/Dayton Aerospace Corridor: Industrial/distribution assets tied to Wright-Patterson AFB.
7. Beachwood (Cleveland Suburbs): Medical office boom and high-end retail developments.
8. West Chester (Cincinnati Suburbs): Logistics, flex-industrial, and multifamily growth near I-75.

Top Commercial Lenders in Ohio (2025)

Several national and regional lenders actively fund Ohio commercial real estate transactions:

• Huntington National Bank (Columbus HQ): Leading Ohio-based lender specializing in permanent and construction loans for properties statewide.
• KeyBank Real Estate Capital (Cleveland HQ): Major provider of commercial mortgages, bridge loans, and agency multifamily loans.
• Fifth Third Bank (Cincinnati): Active with construction, bridge, and SBA loans throughout Ohio’s metros and suburbs.
• First Financial Bank (Cincinnati): Focuses on mid-market CRE loans, especially for retail, multifamily, and industrial borrowers.
• Walker & Dunlop: National multifamily lending presence, strong in Ohio with Fannie/Freddie executions on apartments.
• Horizon Bank: Expanding its commercial platform in Northeast and Central Ohio.

How to Secure a Commercial Real Estate Mortgage in Ohio (Step-by-Step 2025)

1. Define Your Project: Pinpoint property type (multifamily, office, retail, industrial), market, and loan amount required.
2. Prequalify with Lenders: Submit high-level information on your business, property details, and net worth to potential lenders such as Huntington, KeyBank, or Fifth Third.
3. Loan Proposal & Term Sheet: Provide a detailed investment package (executive summary, rent roll, pro forma, existing leases). Lender issues a Letter of Interest (LOI) with key terms (rate, LTC/LTV, DSCR, prepayment, fees).
4. Due Diligence: Complete property appraisal, environmental site assessment (ESA), structural inspection, and legal documentation. Lender reviews sponsor experience and credit profile.
5. Underwriting: Lender analyzes the project’s financials and sponsor strength. May require further documentation (entity paperwork, business plan, tax returns).
6. Loan Approval & Commitment: Upon underwriting approval, lender issues final commitment. Borrower posts deposit for third-party reports.
7. Closing: Title review, insurance compliance, and final legal review. Funds disbursed at closing (or in draws for construction).

2025 Market Trends Impacting Ohio CRE Financing

• Interest Rate Dynamics: With the Fed signaling stable to slightly lower rates in 2025, commercial mortgage rates are expected to range from 6.1%–7.5% for most properties, with lower rates for stabilized multifamily and higher leverage.
• Construction Lending Surge: New housing demand and industrial expansion fuel increased appetite for construction loans, especially for mixed-use and conversion projects.
• Demand for Value-Add & Transitional Financing: Bridge loan activity robust as owners reposition underutilized office and retail properties.
• Environmental & Zoning Scrutiny: More lenders require stringent due diligence, especially in older industrial corridors.

Ohio CRE Success Stories: How Smart Borrowers Closed

• $2.1M Bridge Loan, Downtown Cleveland: Investor secured a 24-month, interest-only bridge loan at 8.10% from KeyBank to acquire and renovate a 45,000 sq. ft. office-to-apartment conversion. Flexible prepayment allowed a quick refinance to an agency loan upon stabilization.
• $4.7M Construction Loan, Columbus (Short North): Developer worked with Huntington Bank to fund a new 38-unit mixed-use building. 18-month term, 80% LTC, rate locked at SOFR+2.85%. Project completed on budget and leased up within 10 months.
• $850K Permanent Mortgage, Cincinnati Suburb: Small business owner closed with Fifth Third Bank on a 10-year fixed loan (SBA 504 structure) for an owner-occupied medical office. 90% LTV, 6.33% interest rate, 25-year amortization.
• $3.2M Multifamily Loan, Dayton: Borrower refinanced a stabilized 60-unit apartment through Walker & Dunlop, leveraging Fannie Mae’s fixed-rate program at 6.05% over 12 years, with interest-only first 24 months.

FAQs: Commercial Real Estate Loans in Ohio (2025)

What are typical commercial mortgage rates in Ohio for 2025?

Rates vary by asset/borrower type, but average 6.1–7.5% for stabilized office, retail, or industrial. Multifamily loans with agency backing often land at the lower end of the range.

What is the minimum down payment for Ohio commercial property?

Most banks require 25–35% down, but SBA 504/7(a) programs enable some owner-occupants to finance as little as 10% down.

How fast can a CRE mortgage close in Ohio?

Fast-track bridge and agency loans can close in 21–40 days if sponsor is organized. Permanent and construction financing typically require 45–60 days for full due diligence.

Are non-recourse loans available for Ohio investors?

Yes, for certain asset types (multifamily, self-storage, select retail, and industrial), non-recourse loans are available, but usually require strong sponsors and property performance.

Can you get financing for special-use properties?

Yes, certain lenders specialize in hotels, medical, and senior housing, but underwriting is more stringent, and rates/terms can be higher.

Conclusion: Succeeding as an Ohio CRE Investor in 2025

With a diverse market, strong local lenders, and a healthy pipeline of innovative development, Ohio continues to attract commercial real estate investment in 2025. Success hinges on matching the right loan product—be it a bank mortgage, bridge financing, or an agency multifamily loan—to your property’s needs and your overall strategy. Partner with experienced local lenders, leverage professional advisors, and move proactively to capture deals in Ohio’s top submarkets.

✅ 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.

Start Quiz

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.

Page 2 of 5

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.

Page 3 of 5

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%

Page 4 of 5

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.

Page 5 of 5

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.

Ready to send

Please provide your contact information to proceed.

Email Address *

First Name *

Consent *

Yes, I agree with the privacy policy and terms and conditions.

Submit

Ready to explore CRE financing? Connect with Ohio’s top lenders or a commercial mortgage broker today to take advantage of 2025’s opportunities.

GHC Funding DSCR LOAN, SBA LOAN, BRIDGE LOAN

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

See Full Bio

DSCR LOAN SBA LOAN BRIDGE LOAN