Financing for the office building you run your business from, or the one you own as an investment

It comes down to who uses the space. If your own business occupies most of the building (generally 51% or more), you are an owner-user and can usually access SBA 504 or 7(a) financing, which means lower down payments and attractive fixed terms. If you lease the building to other companies, you are an investor and the loan is underwritten on the rent roll, tenant credit, and lease terms through a bank, CMBS, or DSCR lender. The path you qualify for changes the down payment, the rate, and the documentation, so we confirm which bucket you fall into early.

For an owner-occupied purchase using SBA 504, the borrower contribution is often around 10%, which is one of the program's biggest advantages. Investor office loans usually require more equity, commonly 25-40% down, because lenders cap loan-to-value in the 60-75% range and go lower on weaker or partly vacant buildings. The exact figure depends on the building class, occupancy, and tenant quality. We can model a few scenarios so you see the real cash-to-close before you write an offer.

Since 2020, hybrid and remote work pushed up office vacancy in many markets, and lenders responded by tightening terms. Where strong office deals once reached 75% loan-to-value, many lenders now cap at 65-70% for all but the best buildings, and they want higher debt-service coverage. Capital still flows to Class A, well-leased properties; older Class B and C buildings, or anything with near-term lease rollover, require a stronger story and the right lender. As a broker, our job is to find the lenders still active in your specific submarket and asset type.

DSCR, or debt-service coverage ratio, measures whether the building's net operating income comfortably covers the loan payment. A 1.25x DSCR means the property earns 25% more income than the debt costs. Most lenders treat 1.25x as the minimum for a stabilized office building and ask for 1.30x or higher when the asset or market is riskier. If your numbers come in tight, we can adjust loan amount, term, or structure to make the coverage work.

Yes, if your practice will occupy at least 51% of the building, a medical or dental practice can use SBA 504 or 7(a) financing to buy its own office. Healthcare real estate often finances well because the tenant improvements make practices unlikely to relocate. If you are an investor buying a leased medical building rather than occupying it, SBA is off the table, but bank and CMBS lenders generally view medical office favorably compared to traditional office. We finance both situations and steer you to a lender who actually understands healthcare space.

For investor office, the tenants effectively co-sign the loan in the lender's mind. Strong, creditworthy tenants on long leases support higher leverage and better pricing; short remaining lease term or a single tenant about to expire makes lenders nervous and can shrink the loan. Lenders look closely at the weighted-average lease term and prefer staggered expirations so the building does not empty out all at once. Bringing a clean rent roll and copies of the leases to the table speeds everything up.

Class is shorthand for quality, age, location, and amenities. Class A buildings are newer, well-located, and command top rents, so they finance most easily and at the best leverage. Class B is solid but older or less amenitized, and Class C is older or in weaker locations. None of these are unfinanceable, but B and C office deals today usually require more equity, a clearer business plan, and a lender comfortable with the submarket. We position the deal honestly so it lands with a lender likely to actually close it.

Yes, and refinancing a maturing commercial loan is one of the most common reasons owners call us. Many older office loans were written with balloon payments due after five to ten years, and today's tighter terms can make the renewal more challenging than the original. The earlier you start, ideally six months or more before maturity, the more options we can line up. We review your current loan, occupancy, and income, then shop banks, CMBS, and DSCR lenders to find the best available replacement, including cash-out for improvements where the numbers support it.