What are typical term lengths for commercial real estate loans?

Commercial real estate loans typically have shorter terms than residential mortgages, often 5, 7, or 10 years, with amortization periods of 20–30 years. This creates a balloon payment at the end of the term, when the remaining balance must be paid or refinanced. Some portfolio lenders offer terms up to 20–25 years with full amortization. Agency loans (Fannie Mae/Freddie Mac multifamily) may offer fixed terms of 5–30 years. Life insurance company loans often feature 10-year fixed terms with full 25–30 year amortization. CMBS loans typically have 10-year terms. Construction loans are short-term (12–36 months) until the project is complete and stabilized.