For decades Popular Bank has been helping Miami commercial real estate customers finance projects, bringing to life numerous developments across South Florida’s dynamic market. According to a recent CBRE survey, Greater Miami is now the second-largest investment market in the country. From ultra-luxury coastline and downtown Miami high-rises to more accessible developments, many projects are slated to be completed in the next year or two, signaling that the demand for financing will likely remain strong in 2026.

Popular Bank’s commercial real estate approach has zeroed in on two distinct lending options: bridge lending and construction financing. The bank’s team helps clients, including local developers and investors, understand which option to use and when, helping them unlock opportunities in one of the nation’s hottest markets.

Bridge Lending: a phased approach to financing construction projects

The bridge lending market has transformed dramatically in recent months. Less than two years ago, the rates were in double digits. The rate has since dropped below 10%, making bridge lending a more attractive and accessible capital option for borrowers.

For developers pursuing repositioning or stabilization plays, bridge loans present a window of opportunity. For some clients, a phased approach tied to specific project deliverables makes the most sense. A few weeks ago, Popular Bank closed a $10 Million bridge loan to help finalize renovations and lease-up of a 71-unit multifamily building in the Little Havana neighborhood of Miami. Working closely with the client, the bank defined each stage of the project, outlining what needed to be completed to activate the next funding found. Access to multi-phased short-term capital kept the project momentum going while mitigating the risks of larger financing loans. It was the right approach for the project and it is currently in phase two of funding their project.

Construction Lending: financing ground-up projects from blueprint to occupancy

For developers considering a construction loan, it is important to keep a few things top of mind. Unlike shorter-phased bridge loans, capacity in construction lending has tightened. Lenders and developers alike are looking at project feasibility before breaking ground. Regulatory pressures, higher costs of labor and materials, concentration limits, and sector-specific stress have made lenders far more selective, particularly for speculative builds.

And while Miami’s market fundamentals remain strong, they can vary by property type. Multifamily faces short-term pressure with more than 32,000 units under construction, about 24% of existing supply. Industrial vacancy has risen to 6.2% following record deliveries. Retail continues to perform well with sub-4% vacancy and limited new inventory.

For condominium developers, lender expectations have increased as well, often requiring significant pre-sale levels before a construction loan closes. These higher thresholds help ensure projects demonstrate true market demand in a segment where sales velocity varies widely by location and product type. Popular Bank recently helped finance a ground-up construction of a 312-unit multifamily located in the Naranja neighborhood of Miami-Dade with a $32.4 Million loan.

Miami remains one of the most dynamic commercial real estate markets in the nation, with tens of thousands of jobs added in the past two years alone. The opportunity is here and lenders like Popular Bank remain eager to deploy capital for well-positioned projects that make our city vibrant and enjoyable for everyone.

To learn how Popular Bank can help bring your development to life, reach out to one of the bank’s CRE team members.

A version of this article was previously published bizjournal.com.

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