Contemporary medical office building with glass facade

Medical Office Building Loans for Practices and Investors

Sticky tenants, specialized build outs, and recession resistant demand make MOB a lender favorite. We match practices and investors with the right capital.

Why Medical Office Is One of the Stickiest Asset Classes

Medical office buildings behave differently from standard office. Healthcare tenants sign long leases, invest heavily in specialized build outs they cannot easily walk away from, and serve demand that holds up in any economy. That tenant stickiness makes MOB one of the most financeable property types in commercial real estate. Lenders evaluate tenant credit, lease term remaining, proximity to hospitals or health systems, and the reusability of the medical build out. CapitalAx works with two kinds of MOB borrowers: physician groups buying the building their practice occupies, and investors acquiring leased medical office. Owner occupied practices often get the best terms through SBA 504, which allows as little as 10% down and a long fixed rate. Investors with credit tenant buildings reach conventional and CMBS programs. Demographics keep working in the sector's favor as an aging population drives sustained demand for outpatient care, imaging, dental, and specialty clinics.

Common Borrower Profiles

Physician groups buying their practice building
Dental and specialty practice owners
Medical office investors and syndicators
Healthcare systems acquiring outpatient sites
Developers of new outpatient and clinic space

Available Loan Structures

SBA 504 for owner occupied medical practices
Conventional bank loans for leased MOB
CMBS for credit tenant medical buildings
Bridge financing for lease up or repositioning
Construction loans for new outpatient facilities

Underwriting Considerations

Tenant credit and health system affiliation
Weighted average lease term remaining
Reusability of specialized medical build out
Proximity to hospitals and referral base
Practice financials for owner occupied deals

Common Challenges

High tenant improvement costs for medical build outs
Re tenanting difficulty for specialized space
Reimbursement changes affecting practice revenue
Concentration risk in single tenant buildings
Longer lease up for new outpatient developments

Why CapitalAx for Medical Office Building Deals

Medical office rewards lenders who understand healthcare, not just square footage. CapitalAx works with SBA 504 lenders for physician owned practices and conventional, CMBS, and bridge sources for MOB investors. We know how to present tenant credit, health system affiliation, lease term, and the reusability of specialized build outs so lenders see the stability that makes medical office one of the most fundable property types in commercial real estate.

Related Loan Programs

Explore other property types we finance. Browse all property types.

Markets We Serve

Austin, Texas

Miami, Florida

Atlanta, Georgia

Stamford, Connecticut

Tools & Calculators

Commercial Mortgage and Loan Amortization Calculator

Calculate commercial mortgage payments, total interest, and a month by month loan amortization schedule.

Construction Interest Reserve Calculator

Size interest reserve from the drawn balance, calculate loan to cost, and create an editable monthly draw schedule.

Hotel Underwriting Calculator

Convert ADR, occupancy, and RevPAR into hotel revenue, NOI, value, maximum loan proceeds, and equity including a PIP budget.

Self Storage Underwriting Calculator

Estimate revenue, NOI, value per unit, and maximum self storage loan proceeds.

Frequently Asked Questions

Healthcare tenants pour money into specialized build outs, imaging rooms, plumbing for dental and surgical suites, and lead lined walls that would be expensive to rebuild elsewhere. That sunk cost, plus an established patient base tied to the location, keeps tenants in place for long terms and drives high renewal rates. Lenders reward that stability with better terms than they offer on conventional office, where tenants move more freely.

For most owner occupied practices, SBA 504 is the strongest option. It funds the real estate with as little as 10% down, a below market fixed rate, and a 25 year term, which frees up cash for the practice while building equity in the property. You need to occupy at least 51% of the building. Groups that want to lease extra suites to other providers can still qualify while renting out the balance.

Investors are underwritten on tenant credit, lease term remaining, and the strength of the location relative to nearby hospitals and referral sources. A building anchored by a hospital affiliated group on a long lease reaches conventional and CMBS terms. Buildings with shorter leases or independent practices draw more scrutiny on renewal risk and the cost to re tenant specialized space if a provider leaves.

Finance Your Medical Office Building Project

Tell us about your property and financing needs. We'll connect you with lenders who specialize in this asset class.