Tips for Commercial Real Estate Loans in the DFW Area
Terrydale Capital
Dec 16, 2025 5 Min read
Dallas Fort Worth is one of the most active commercial real estate markets in the country. Capital is available, but it is not automatic. Borrowers who understand how local lenders think close faster and on better terms.
Here is what actually matters when getting a commercial real estate loan in DFW.
Know Your Submarket, Not Just the Metro
DFW is not one market. It is many markets stacked together.
Lenders price risk differently in Frisco than they do in Oak Cliff. Industrial in Alliance behaves nothing like retail in Garland. When you talk about a deal, be specific. Mention the street, the demand drivers, and the recent leasing activity.
Local knowledge builds lender confidence fast.
Debt Service Coverage Is the Real Gatekeeper
In DFW, strong rent growth does not replace cash flow. Most lenders want a debt service coverage ratio of at least 1.25. Some will stretch to 1.20, but only with strong sponsorship.
If the property does not cash flow today, be ready to explain how and when it will. Hope is not a business plan.
Local Banks Still Matter
National lenders are active, but Texas banks still dominate small and mid size commercial loans.
Community and regional banks often offer better flexibility on structure, interest only periods, and prepayment terms. They also care about relationships. Deposits, operating accounts, and future deals all help.
If you plan to own property in DFW long term, a local bank relationship is an asset.
Property Type Changes Everything
Multifamily, industrial, office, and retail are underwritten very differently.
Industrial remains the easiest to finance in most parts of DFW. Multifamily is available but tighter than it was two years ago. Office requires strong tenancy and conservative leverage. Retail works when the tenant mix makes sense and leases are real.
Do not assume one lender appetite applies to every asset.
Be Conservative With Leverage
Just because a lender offers high leverage does not mean you should take it.
Lower leverage means better pricing, smoother approvals, and fewer problems at renewal. In a market that moves as fast as DFW, flexibility beats max proceeds.
Smart borrowers leave room to breathe.
Prepare Your Story Before You Apply
A clean rent roll and trailing twelve month financials are table stakes.
What separates strong deals is a clear story. Why this property. Why this location. Why you. And why now.
If you can explain the deal simply, lenders can approve it faster.
Work With Someone Who Knows DFW Lending
Loan terms change quickly in this market. What worked last quarter might not work today.
A broker or lender who actively closes DFW deals knows which banks are lending, which credit boxes are open, and which ones quietly closed. That saves time, money, and frustration.
In commercial real estate, speed and certainty win.
DFW rewards preparation, realism, and local insight. Get those right and financing becomes a tool, not an obstacle.
Partner With Terrydale Capital for Your Debt Financing Needs
When it comes to debt financing, understanding the right timing, process, and options is crucial. At Terrydale Capital, we provide a comprehensive range of commercial loan solutions tailored to meet your business's unique needs.
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Headquartered in Dallas, Texas, Terrydale Capital is a leader in commercial real estate financing. We have close relationships with the nation’s top banks, lenders & family offices allowing us to provide the most competitive financing solutions in the market.
