How much deposit do I need to put down on a commercial property?

For commercial property, the deposit (or down payment) is usually larger than for residential real estate.

Here’s the typical range:

• Conventional commercial loans: Banks usually require 20%–30% of the property’s purchase price as a deposit.
• SBA 7(a) or SBA 504 loans (U.S.): These government-backed loans often let you put down as little as 10%, sometimes a bit more if the property is specialized or risky.
• Investor / rental properties: Lenders often ask for 25% or more, since these are considered higher risk than owner-occupied properties.
• Zero-down options: Rare, but in some cases (e.g., seller financing, partnerships, or if you secure additional collateral) you might not need much upfront.

👉 Example: If you’re buying a $1,000,000 commercial building:

• With a 25% deposit, you’d need $250,000 cash down.
• With an SBA loan (10%), you’d need only $100,000.

Simple table showing how much deposit you’d typically need to put down on a commercial property (using a $1,000,000 purchase price as an example):

Loan Type	Typical Deposit %	Cash Deposit on $1,000,000
Conventional Bank Loan	20% – 30%	$200,000 – $300,000
SBA 7(a) Loan (U.S.)	~10% – 15%	$100,000 – $150,000
SBA 504 Loan (U.S.)	~10% (sometimes more)	$100,000+
Investor / Rental Property	25%+	$250,000+
Seller Financing / Partnerships	Varies (sometimes 0%)	Negotiated

👉 The exact deposit depends on the lender, your credit profile, the type of property (office, retail, multifamily, industrial), and whether you’re occupying it or renting it out.

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