Question 1

Can a Houston office building still get financed at 24.7% vacancy?

Accepted Answer

Not as stabilized permanent debt, which is exactly why bridge exists. Cushman and Wakefield put overall Houston office vacancy at 24.7% in the second quarter of 2026, down 10 basis points quarter over quarter, with Class B at 28.7% against Class A at 23.9%. At those numbers a permanent lender is underwriting the metro. We underwrite your rent roll, your tenant credit, and the tenant improvement and leasing commission budget it takes to get from where the building is to where your plan says it lands. Class B office is where most Houston bridge requests cluster right now, and the two things that decide the file are basis and a leasing plan with real dollars behind it. See the CRE bridge program for structure.

Question 2

Why do I see three different Houston industrial vacancy numbers?

Accepted Answer

Because each brokerage defines the Houston industrial base differently, so the figures are not comparable. CBRE reported 6.7% vacancy for the second quarter of 2026, with about 7.0 million square feet of net absorption in the quarter, 5.8 million square feet delivered, and 17.7 million square feet under construction at 42% pre-leased. Matthews and Avison Young published 7.3% and 7.6% for the same market on their own inventory definitions. Pick one house, name it, and keep it consistent across your pro forma so your committee is comparing like with like. The more useful signal is the supply: asking rent growth turned roughly negative 0.8% annually on the brokerage summaries, described as the first negative print in more than a decade. Underwrite a stabilized rent you can defend, not last year's.

Question 3

Which Houston property types have a clean permanent takeout right now?

Accepted Answer

Retail is the most financeable of the three on a stabilized basis. Cushman and Wakefield had Houston retail vacancy at 5.8% in the second quarter of 2026, up 10 basis points both quarter over quarter and year over year, and inside a 5.0% to 5.8% band for the past four years. That stability is what a permanent lender wants to see. Industrial is fundamentally healthy on absorption but supply-pressured on rent, so a bridge-to-perm exit there should be sized on a conservative stabilized rent rather than the top of the comp set. We write the bridge and the permanent loan, so the takeout assumptions get tested at the front of the deal instead of at month 20. Both are subject to underwriting.

Question 4

How should I underwrite rent on a Houston multifamily lease-up or repositioning?

Accepted Answer

Stress the rent, not the appreciation. Houston multifamily occupancy was 88.1% in the second quarter of 2026, down from 88.6% a year earlier, with average asking rent at $1,368 against $1,380, 7,492 units absorbed over the trailing 12 months, 4,719 units delivered in the quarter, and 13,066 still under construction. New deliveries in lease-up compete on concessions, and that sets the effective rent your renovated units can actually reach. Build the pro forma on effective rent net of concessions, give the lease-up a real number of months, and size the term to it. Our bridge runs up to 24 to 36 months, interest-only, which is meant to survive a slow leasing quarter rather than a perfect one.

Question 5

What happens to my property taxes and carry after I reposition a Houston asset?

Accepted Answer

Plan for a reassessment, and know that the one cap protecting you is scheduled to lapse. Texas Tax Code section 23.231 caps the appraised value increase on non-homestead real property at 20% a year plus new improvements, for properties at or below a threshold that indexes annually, set at $5 million for tax year 2024. It took effect January 1, 2024 and expires December 31, 2026 unless the Legislature extends it, so a hold underwritten into 2027 should not assume it survives. Combined rates inside Houston city limits run roughly 2.1% of taxable value on 2025 rates, and a property in a Katy, Cypress, Fort Bend or Montgomery County MUD carries that district's levy on top, which can push a total rate meaningfully higher. Pull the actual rates for your parcel from the appraisal district and the district's own filings, and talk to your CPA or property tax counsel about the reassessment.

Question 6

How do commercial closings and distressed timelines work in Harris County?

Accepted Answer

A title company closes the deal, and the distressed calendar is fast and fixed. Texas title insurance premiums are promulgated by the Texas Department of Insurance, with rates effective March 1, 2026, so every licensed title company charges the same basic premium and you choose on execution rather than price. Foreclosure is non-judicial under Texas Property Code section 51.002: notice of sale goes out at least 21 days before the sale, and sales run on the first Tuesday of the month at the county courthouse between 10 a.m. and 4 p.m., moving to the first Wednesday when the first Tuesday falls on January 1 or July 4. That short cycle recycles distressed Houston inventory quickly, and it means a note purchase or a courthouse-steps play needs certainty of funds on a known date. Tell us the date you have to perform by and we will tell you straight whether we can hit it. Talk to us or start an application.

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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