Who's Still Lending on Office Buildings (And How to Get Funded)
Office underwriting has changed since 2020. Lenders scrutinize lease terms, WALT, and tenant flight-to-quality trends more closely than ever. We track which lenders are still active.
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.
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
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 Notes
- 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
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.
Frequently Asked Questions
Are lenders still financing office buildings after the remote work shift?
Yes, but selectively. Lenders favor well-leased properties with long weighted average lease terms, strong tenant credit, and modern amenities that attract tenants in the current flight-to-quality environment. Class A buildings in strong submarkets and owner-occupied professional offices (via SBA 504) continue to attract competitive financing. Properties with near-term lease rollover or high vacancy face tighter terms.
What is SBA 504 financing for owner-occupied offices?
SBA 504 allows professionals, doctors, lawyers, accountants, engineers, to purchase their office building with as little as 10% down, a below-market fixed rate, and a 25-year term. It remains the best financing program available for business owners who are currently leasing office space and want to build equity through ownership instead.
How does weighted average lease term (WALT) affect office financing?
WALT tells lenders how long the property's current income stream is likely to continue before leases expire. A longer WALT reduces rollover risk and generally results in better loan terms. A short WALT means the lender faces re-leasing risk sooner, which may lead to higher rates, lower leverage, or reserve requirements for tenant improvements and leasing commissions.