The short version
- When the mortgage on a warehouse comes due, you can refinance or ask the lender to extend or modify the loan. You can also pay it off from other money, or sell the building and pay the loan off at closing.
- In a sale, the title company gets a payoff statement from your lender and pays the loan from the price at closing. Once the loan is paid, the mortgage is released.
- Paying a loan off before it matures can bring a prepayment charge. Your loan documents say whether yours has one.
- The Mortgage Bankers Association counted $875 billion of commercial and multifamily mortgages, 17% of the total, scheduled to mature in 2026.
- A sale needs time for its own steps, so start well before the maturity date.
This page is for owners of a warehouse or industrial building whose commercial mortgage is coming due. It's also for owners facing a balloon payment they can't refinance on terms that work, or who are weighing a sale against a new loan. It covers the options, how a payoff works when you sell, and what to check in your loan documents.
We're part of a family-owned business that has been operating for over 15 years. We buy industrial buildings in Philadelphia, its Pennsylvania suburbs and South Jersey. We're the buyer, not a lender.
What are your options when the loan on your warehouse comes due?
When the loan on a warehouse comes due, you can refinance or ask the lender to extend or modify it. You can also pay it off with other funds, or sell and pay it off at closing. If a sale price won't cover the payoff, you cover the gap or need the lender's written agreement to accept less.
| Option | What it takes | What you keep | What can go wrong |
|---|---|---|---|
| Refinance | A lender's approval, which can depend on a new appraisal and a review of the building's income and condition | The building, with a new loan | A lower appraisal or tighter terms than you expected |
| Extend or modify | Your current lender's agreement to new terms | The building, with changed loan terms | Fees, a higher rate or conditions you'd rather not take on |
| Pay off with other money | Cash from another source | The building, debt-free | Tying up money you may need elsewhere |
| Sell the building | A buyer, a purchase agreement and the steps to closing | The proceeds after the payoff and costs | A price below what you owe, or a closing that runs past the maturity date |
The options can overlap. Some owners ask for a short extension to give a sale time to close. Whether a lender grants one is up to the lender, so ask early and get its answer in writing before you plan around it. If you want to keep using the building, a sale-leaseback lets you sell it and sign a lease to stay.
Why are so many commercial loans coming due now?
Commercial mortgage maturities are still high in 2026. The Mortgage Bankers Association counted $875 billion of commercial and multifamily mortgages, 17% of the outstanding balance, scheduled to mature during the year. That's down 9% from 2025. Owners whose loans are among them have to refinance on today's terms, extend the loan, pay it off or sell.
Industrial loans are part of the wave. The same MBA survey found that 23% of industrial property loans are scheduled to mature in 2026. Industrial loans have also performed better than other property types, according to Trepp's figures. Trepp's delinquency rate for industrial loans in commercial mortgage-backed securities was 1.14% in September 2026, as Scotsman Guide reported, against 8.02% for all property types. A year earlier, the industrial rate was 0.56%.
How does the loan get paid off when you sell?
When you sell, the title company asks your lender for a payoff statement showing exactly what's owed through the closing date, including interest and any fees. At closing, the title company pays the lender from the sale price, and the lender releases its mortgage. Any other liens on the property, such as judgments or unpaid taxes, are paid off the same way.
A payoff statement is good through a stated date, and interest keeps running each day after it. If the closing moves, the title company orders an updated one. You see the payoff, the transfer taxes and every other charge on the settlement statement before you sign.
The title search during due diligence turns up recorded liens, so they can be dealt with before the closing table. If there's a lien you dispute or didn't know about, tell the title company early, because clearing it can take time.
Will you owe a prepayment charge if you sell before the loan matures?
You may owe a prepayment charge if you pay off a commercial loan before it matures. Your note and mortgage say whether the loan has one and how it's figured. The lender's payoff statement shows the amount for a given payoff date, so ask for one early when you're weighing a sale.
A loan paid off on its maturity date isn't being prepaid. If your loan's charge steps down over time, the payoff date is worth planning around.
What if you owe more on the building than it would sell for?
If the payoff and the seller's closing costs come to more than the sale price, the seller has to cover the difference at closing. The other route is for the lender to agree in writing to accept less and release its mortgage. The decision to accept less belongs to the lender.
A written offer puts a buyer's price on paper, so you and the lender can work from the same number. We can't make any promise about what your lender will do. If your lender has sent a default notice or a maturity notice, tell us when you reach out, so the offer and the proposed closing date take it into account.
How early should you start if you plan to sell before the maturity date?
Start well before the maturity date, because a sale has steps of its own. They include the buyer's due diligence period, the title work and any town certificate. In New Jersey, the state must also receive the bulk sale notice at least 10 business days before closing. A covered industrial business adds the Industrial Site Recovery Act's steps.
We can't promise a set number of days. When you sell to us, you choose the date, within the required steps and the due diligence period in our offer. Telling us the maturity date at the start lets the offer propose a closing date with that deadline in mind. Our seller's guide lists the lead times that set the pace.
What to have ready
- The note and mortgage, or at least the maturity date, the rate and the prepayment terms
- Your latest loan statement and the lender's payoff contact
- Any notices from the lender about maturity, default or extension
- A list of any other liens or judgments you know about
- Leases and a rent roll, if the building has tenants
- A recent tax bill and the building's basic specs
Selling to us before a loan comes due
Send the address and the maturity date. After we walk the building, our written as-is offer gives the price, a proposed closing date and who pays which costs. You can then compare it with what a refinance would leave you. We charge no commission and no fees, and proof of funds is available on request. How It Works covers each step.
Related situations: a vacant building or a tenant leaving, selling with tenants in place and a building that needs repairs.
Sources
- Mortgage Bankers Association: 17 percent of commercial and multifamily mortgage balances to mature in 2026 (February 9, 2026)
- MBA NewsLink: 17% of commercial and multifamily mortgage balances to mature in 2026 (February 9, 2026)
- Scotsman Guide: CMBS delinquencies reach highest level since 2020, citing Trepp (October 6, 2026)
- NJ Division of Taxation: Bulk sale FAQ (updated October 28, 2025)
The figures and rules on this page come from the sources listed here, last checked in October 2026. Your loan documents govern your own payoff, so confirm the figures with your lender and the title company.
