Top Commercial Real Estate Lenders in California for 2025
California’s commercial property market has always been a magnet for investors. Whether it is office space in San Jose, retail centers in SoCal, or mixed-use buildings in Oakland, the state keeps drawing capital. But buying or developing commercial real estate here? It is not cheap. Getting the right financing partner makes all the difference. And with so many commercial real estate lenders in California to choose from, picking the right one can get tricky.
Rates, terms, and sector expertise vary. The wrong choice could slow your project down or eat into margins. This guide cuts through the clutter. If you are seeking commercial real estate loans in California, these are the lenders worth watching in 2025.
What to Look For in a Commercial Real Estate Lender This Year
It is not just about who offers the lowest rate anymore. Nowadays, developers know what to focus on: flexibility, and speed. The best commercial real estate lenders in California will definitely be:
- Moving faster on underwriting
- Offering non-recourse or limited-recourse structures
- Working with a wide range of property types
- Customizing commercial real estate loan terms based on borrower profile
- Providing digital tools or mobile access to manage loans
Right now, the lending scene is favoring lenders who can think beyond the usual. Especially for business owners dealing with market swings, tight timelines, or zoning shifts.
Top Commercial Real Estate Lenders in California
1. U.S. Bank
If you are looking for one of the most active commercial real estate lenders in California, then look no farther than the U.S. Bank. It caters to a range of business owners, from first-time buyers to experienced developers. They offer a wide variety of funding options like SBA-backed loans, construction equipment financing, and term loans with great fixed-rate options. They have experience in industrial, retail and mixed-use of properties, making them an expert lender in these sectors.
2. Bank of the West (a division of BMO)
Bank of the West has a solid footprint in the state. Known for working with small and mid-sized businesses, it provides commercial real estate loans in California that cover acquisition, refinance, and even equity recapture. Their approval process is relatively fast for traditional banking.
3. Wells Fargo
A heavyweight in CRE lending, Wells Fargo still funds a broad spectrum of commercial property deals. They specialize in long-term commercial real estate loan terms with options up to 25 years. Also strong in construction-to-perm lending.
4. First Foundation Bank
Smaller bank, but one to watch. Especially appealing for those in multifamily housing and local retail, this institution has been growing its commercial loan portfolio in Southern California. Many borrowers like their hands-on relationship banking model, which is becoming rare.
5. Axos Bank
A digital-first lender making waves in the California market. If speed and tech access matter, Axos is worth considering. They fund investment property deals with shorter commercial real estate loan terms, and offer refinancing options with fewer hoops.
These five represent a mix of traditional institutions and modern players. Together, they reflect where commercial real estate lenders in California are headed in 2025.
Comparing Commercial Real Estate Loan Terms
Before signing, borrowers need to dig into the fine print. A longer commercial real estate loan term might mean lower payments, sure, but could also come with balloon payments or rate resets.
Key variables to watch out for:
- Fixed vs. variable rate structures
- Prepayment penalties (some are steep)
- Recourse vs non-recourse clauses
- Closing costs and hidden underwriting fees
- SBA options (especially 504 for real estate-heavy projects)
A short-term win can become a long-term trap. Do not skim the term sheet. Always ask lenders to walk through each clause. It is surprising how many overlook that step.
Conclusion
There is no shortage of commercial real estate lenders in California, but finding the right fit is another story. In 2025, business owners and developers need partners and not just funders. Whether you want a longer commercial real estate loan term for stability or a faster closing window to beat the market, the right lender should meet your deal where it is.
Do your research. Ask tough questions. And do not rush it. The wrong loan structure can drain equity fast. California’s real estate scene moves quickly, but that does not mean you should.
