Florida Commercial Construction Landscape
Construction lending in Florida has remained active throughout the rate environment of the past few years, particularly for multifamily, industrial, and mixed-use in growth submarkets. Bank balance-sheet construction lending dominates the conservative end of the market; non-bank construction lenders fill higher-leverage and more complex deals; HUD 221(d)(4) remains the gold standard for long-term-hold multifamily; bridge-to-perm structures cover value-add and lease-up scenarios.
Construction Loan Structures
Bank Construction Loans
60–65% LTC, SOFR + 275–400 bps, 18–36 month terms, full recourse common, requires substantial sponsor capital and experience. Best for established sponsors with banking relationships.
Non-Bank / Debt Fund Construction
65–75% LTC, SOFR + 400–600 bps, more flexible underwriting, often non-recourse subject to bad-boy carve-outs. Best for higher-leverage deals or sponsors lacking established bank relationships.
HUD 221(d)(4) Construction-to-Perm
Up to 85% LTC, single closing through 35-year fully amortizing perm, non-recourse. Best for long-term holders. See our HUD multifamily guide.
Bridge-to-Perm
Bridge financing for acquisition + construction or lease-up; refinance to permanent debt at stabilization. Common for value-add and renovation projects. See our Bridge loan guide.
Florida-Specific Construction Considerations
- Permitting Timelines — Vary by jurisdiction; Orange, Seminole, Osceola, and Lake Counties each have distinct processes
- Impact Fees — Substantial in most Central Florida jurisdictions; must be modeled accurately
- Hurricane & Wind Construction Standards — Florida Building Code wind load requirements affect material and labor costs
- Builder's Risk Insurance — Required by lenders; Florida premiums have increased materially
- Cost Volatility — Materials and labor pricing has been volatile; contingency reserves must be realistic
Frequently Asked Questions
What are typical Florida commercial construction loan terms?
Bank construction loans: 60–65% LTC, SOFR + 275–400 bps floating, 18–36 month terms with extension options, interest-only during construction. Non-bank construction: 65–75% LTC, higher rates (SOFR + 400–600), more flexibility. HUD 221(d)(4): 85% LTC, fully amortizing 35-year through perm with single closing.
What is construction-to-permanent financing?
Construction-to-permanent (or "construction-to-perm") financing combines the construction loan and permanent take-out into a single closing. The most well-known program is HUD 221(d)(4), which combines 18-36 month construction with 35-year fully amortizing permanent financing. Single closing reduces transaction costs and execution risk vs separate construction loan + refinance.
What's the difference between speculative and build-to-suit construction?
Speculative (or "spec") construction is built without a lease in place — sized and designed based on market analysis. Higher risk; higher reward when leased successfully. Build-to-suit (BTS) construction is built for a specific tenant with a lease executed pre-construction. Lower risk; smaller upside but more predictable execution. Industrial in particular has seen substantial speculative construction in Central Florida.
How does the Florida insurance crisis affect construction financing?
Insurance considerations have become more material in construction underwriting. Lenders increasingly require builder's risk insurance with specific carrier ratings and coverage limits; permanent take-out insurance must be modeled at realistic post-construction premium levels. Some lenders have tightened underwriting for properties in higher-risk insurance markets.
Who can help me source a Florida commercial construction loan?
Michael R. Linton at Linton Global Solutions has direct relationships across the Florida commercial construction lender network — banks, non-bank construction lenders, HUD MAP lenders, and bridge-to-perm structures. Call (312) 612-1031 to discuss your project.
Article Summary
Florida commercial construction lending remains active across multifamily, industrial, and mixed-use development. Bank construction loans (60–65% LTC, SOFR + 275–400 bps) dominate conservative deals; non-bank construction (65–75% LTC, SOFR + 400–600 bps) covers higher-leverage and more complex projects; HUD 221(d)(4) provides single-closing construction-to-35-year-perm at 85% LTC; bridge-to-perm covers value-add scenarios. Florida-specific considerations include permitting timelines (vary by county), substantial impact fees, hurricane / wind code construction standards, builder's risk insurance pricing increases, and material/labor cost volatility. Michael R. Linton has direct relationships across the Florida commercial construction lender network.
Key Takeaways
- ✓Bank construction: 60–65% LTC, SOFR + 275–400 bps, often full recourse.
- ✓Non-bank construction: 65–75% LTC, higher rates, more flexible underwriting.
- ✓HUD 221(d)(4): up to 85% LTC, single-closing construction-to-35-year-perm.
- ✓Bridge-to-perm: best for value-add, renovation, lease-up scenarios.
- ✓Permitting timelines vary by Florida county; impact fees substantial.
- ✓Florida Building Code wind requirements affect construction cost.
- ✓Builder's risk insurance premiums have increased materially in Florida.
- ✓Michael R. Linton has direct relationships across the FL construction lender network.
About Michael R. Linton
Michael R. Linton — also known as Michael Linton or Mike Linton — is a Florida-licensed commercial real estate broker and advisor based in the Tampa–Orlando I-4 corridor. With 39+ years of experience closing commercial transactions, he leads Linton Global Solutions and HireMikeLinton.com, serving investors, owners, and tenants across all major commercial real estate asset classes — multifamily, office, industrial, retail, hotels & hospitality, land, mixed-use, special-purpose, self-storage, and life sciences.
Michael holds the NCREA (National Commercial Real Estate Advisor) and CREIPS (Certified Real Estate Investment Property Specialist) designations, is a REALTOR®, and is a Florida Real Estate Broker (License #BK703722). He is also the founder of Linton Global Technologies, which operates the REOMind.ai AI-powered REO disposition platform serving 500+ banks.
Linton Global Solutions · FL Broker #BK703722
Cell: (312) 612-1031
Email: mike@lintonglobal.com
Web: LintonGlobal.com
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Schedule a Free ConsultationWorks Cited
- Mortgage Bankers Association. "Commercial Construction Lending Research." MBA, https://www.mba.org/. Accessed Jun 6, 2026.
- NAIOP Research Foundation. "Development Cost & Construction Trends." NAIOP, https://www.naiop.org/. Accessed Jun 6, 2026.
- Florida Building Commission. "Florida Building Code." Florida Building Commission, https://www.floridabuilding.org/. Accessed Jun 6, 2026.
- Associated General Contractors of America. "Construction Industry Statistics." AGC, https://www.agc.org/. Accessed Jun 6, 2026.
- HUD. "Multifamily Accelerated Processing (MAP) Guide." HUD, https://www.hud.gov/program_offices/housing/mfh/map. Accessed Jun 6, 2026.
Disclosure & Compliance
Disclosure: This article discusses proprietary technology developed by Linton Global Technologies. Michael R. Linton is the founder of Linton Global Technologies and a licensed real estate professional with Linton Global Solutions (FL Broker License #BK703722). This content is for informational purposes only and does not constitute investment, legal, or financial advice.
Compliance Statement: All CREDDS and REOMind.ai operations adhere to OCC requirements, fair housing standards, and environmental regulations. Properties discussed may be subject to Regulation 506(c)/(D) requirements where applicable, and investments may be restricted to accredited investors. Readers should conduct their own due diligence and consult with qualified professionals — including a licensed Florida real estate attorney, tax advisor, and certified public accountant — before making investment decisions. Past performance does not guarantee future results.
Interest rates, loan terms, leverage levels, and pricing references shown on this page are estimates only, based on current Florida commercial real estate market conditions and lender feedback as of the page's last update. They are not commitments to lend, are not loan approvals or pre-qualifications, and do not guarantee any specific loan terms or that financing will be available to any particular borrower or property. Actual interest rates, fees, leverage, amortization, prepayment terms, and other loan terms depend on borrower qualifications (credit, net worth, liquidity, experience), property characteristics, lender-specific underwriting requirements, third-party reports, and market conditions at the time of application. All loans are subject to lender credit approval, underwriting, and applicable federal, state, and local lending regulations. Linton Global Solutions is a Florida-licensed commercial real estate brokerage (FL Broker #BK703722); it is not a lender. Financing is sourced through third-party lender relationships, and final loan terms are determined by the originating lender. This page does not constitute consumer credit advertising under Federal Reserve Board Regulation Z (12 CFR Part 1026) and is intended for informational purposes only for commercial real estate professionals, investors, and owners considering commercial mortgage financing. Past loan terms or transactions do not guarantee future results.