Question 1

Does Austin commercial still support a bridge loan with office vacancy near 20%?

Accepted Answer

Yes, and the vacancy is the reason bridge debt is the right tool. Partners Real Estate put Austin office vacancy at 19.9% in the second quarter of 2026, the first sub-20% reading in nearly three years, with 3.1 million square feet still under construction. Retail is the other end of the same market: 3.6% vacancy in the first quarter of 2026 at an average asking rent of $26.40 per square foot. Stabilized retail is where permanent debt is comfortable. Office and repositioning plays are where a lender has to underwrite the business plan, the leasing budget, and the time it takes, which is what a CRE bridge loan is built to do.

Question 2

Why do I see two very different Austin industrial vacancy numbers?

Accepted Answer

Because the research houses do not define the Austin industrial base the same way, so the two figures are not comparable. Partners Real Estate reported 15.7% industrial vacancy for the first quarter of 2026, up 90 basis points from 14.8% in the fourth quarter of 2025 and above the prior historic high of 15.3% set in the third quarter of 2003, with 13.2 million square feet under construction and average asking rent of $14.43 per square foot NNN. JLL published a materially higher rate for the same market on its own inventory definition. Pick one house and stay with it across your pro forma. We underwrite to the rent roll, the leasing assumptions, and the comps on your specific building, not to a metro average.

Question 3

How should I underwrite rents on an Austin multifamily lease-up?

Accepted Answer

Underwrite to effective rent, not advertised rent. As of June 2026, roughly 73% of Austin metro apartment units were advertising a concession, and metro occupancy ran about 86% to 88%, three to four points below the national average. A pro forma built on asking rents will overstate income on most of this market. The other half of the picture is supply: Austin metro building permits fell 29.5% year over year in March 2026, with multifamily down 69%, so the delivery wave now being absorbed is not being replaced. That is the case for a 24 to 36 month bridge term rather than a 12 month one.

Question 4

How long a bridge term do I actually need in Austin?

Accepted Answer

Longer than you would have needed in 2021. Austin still has 3.1 million square feet of office and 13.2 million square feet of industrial under construction on the Partners Real Estate counts, and the residential side of the market is running about 5.9 to 6.0 months of inventory with a median 68 days on market as of August 2026. Lease-up and resale both take longer against that backdrop. Our CRE bridge runs up to 24 to 36 months, interest-only, which is sized for a leasing or repositioning plan that has to survive a slow quarter, not for a two-month flip. Actual term, leverage, and rate are subject to underwriting.

Question 5

What happens to property taxes when I buy and reposition an Austin asset?

Accepted Answer

Plan on a reassessment, and do not assume a cap protects you. Texas non-homestead property has a 20% annual cap on net appraised value, but it only applies once you have held the property for a full January through December calendar year, so a purchase-and-exit inside one year gets no cap at all. Travis Central Appraisal District applies it automatically to qualifying property it states as valued at $5.16 million or less. The cap is authorized only for tax years 2024, 2025, and 2026 and expires after 2026 unless the Legislature extends it, so a takeout underwritten on a 2027 hold should not assume it survives. For scale on the underlying bill, Travis County's own FY2026 rate is $0.375845 per $100 of taxable value, before city, school, and any MUD or PID. Talk to your CPA or property tax counsel about your specific parcel.

Question 6

How do commercial closings work in Travis County, and why does speed matter here?

Accepted Answer

A title or escrow company closes the deal; a closing attorney is not customary in Texas. Title insurance premiums are promulgated by the Texas Department of Insurance, so the premium is the same at every title company and you choose on service and on whether they will handle your structure. Texas also has no state real estate transfer tax. On the distressed side, Texas forecloses non-judicially under Property Code section 51.002: sales run the first Tuesday of each month between 10 a.m. and 4 p.m. at the county courthouse, with notice posted at least 21 days ahead. That fixed monthly calendar and short notice window is why certain funding matters more than a quarter point on the rate. Tell us the date you have to perform by and we will tell you straight whether we can hit it.

Question 7

What can a commercial bridge loan be used for?

Accepted Answer

Bridge capital is for repositioning or stabilizing a commercial property before permanent financing: value-add, lease-up, a partner buyout, or pulling equity out through a cash-out. We lend across property types on terms up to 24 to 36 months, with loans up to $10M.

Question 8

What rates, leverage, and terms should I expect?

Accepted Answer

Our commercial bridge pricing starts around 9%, interest-only, up to roughly 75% loan-to-value, on terms up to 24 to 36 months. Published bridge pricing generally runs 8% to 12% with 1 to 3 points. Final terms depend on the asset, the business plan, and sponsor strength.

Question 9

How fast can a commercial bridge loan close?

Accepted Answer

Commercial deals usually close in 2 to 4 weeks. They take a little longer than residential because of the appraisal, the rent roll and operating-statement review, and any third-party reports. We move as fast as the diligence allows and keep one point of contact on your file.

Question 10

Do I need positive cash flow (DSCR) to qualify?

Accepted Answer

Not necessarily at closing. Bridge loans are often underwritten interest-only to the as-stabilized business plan rather than a minimum in-place DSCR, since the property is being repositioned. We do want to see a credible path to stabilization and enough in-place income or reserves to carry the loan.

Question 11

What documents do you need for a commercial bridge request?

Accepted Answer

Typically the purchase contract or current debt, a rent roll and trailing-12-month operating statement, your business plan and renovation budget, and sponsor financials. Larger assets may also need a property condition report and an environmental review. We will give you a clear checklist up front.

Question 12

Is the loan recourse, and is cash-out available?

Accepted Answer

Most bridge loans are recourse with a personal guarantee, while lower-leverage non-recourse can be possible on stronger assets. Cash-out is available when there is equity to support it. We structure recourse and leverage around the specific deal.

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