How Office Lending Has Changed Since 2020
The office market has shifted, and lender appetite has shifted with it. But deals are still getting done, especially for well leased properties with strong tenants, owner occupied professional offices using SBA 504 financing, and value add plays in markets with real demand drivers. CapitalAx connects borrowers with lenders who are actively underwriting office deals and understand the nuances of weighted average lease term, tenant credit, and the remote work impact on occupancy projections.
Common Borrower Profiles
- Office building investors
- Professional practice owners buying their office
- Landlords with multi tenant office properties
- Developers building or renovating office space
- Owner users seeking SBA office financing
Available Loan Structures
- SBA 504 for owner occupied professional offices
- Conventional bank office loans
- Bridge loans for lease up or repositioning
- CMBS for stabilized office buildings
- Construction financing for new office development
Underwriting Considerations
- Tenant roster and lease expiration schedule
- Weighted average lease term (WALT)
- Tenant improvement and leasing commission reserves
- Parking ratio and building amenities
- Proximity to transit and workforce housing
Common Challenges
- Remote work impact on office demand
- Tenant flight to quality newer buildings
- High tenant improvement costs for re leasing
- Sublease inventory creating competition
- Longer lease up timelines in softer markets
Why CapitalAx for Office Building Deals
The post 2020 office market requires a financing advisor who knows which lenders are still actively underwriting office deals and what deal profiles they're comfortable with. CapitalAx tracks lender appetite for office across our 350+ network in real time, connecting borrowers with capital sources that haven't retreated from the sector and understand the difference between a well positioned office asset and a distressed one.
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Markets We Serve
Tools & Calculators
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