Office financing didn’t disappear — it got selective. Lenders still fund office buildings every week; they’ve just narrowed what qualifies. If you understand what they’re screening for, office is one of the few asset classes where patient buyers are getting genuine discounts.
The leases are the collateral
More than any other property type, office is underwritten on its rent roll. Lenders look at the weighted average lease term (how many years of committed rent remain), tenant credit, and rollover risk — a building 90% leased with everything expiring in eighteen months is riskier than one 80% leased for seven years.
What still gets financed
- Medical and professional office. Doctors, dentists, and clinics sign long leases and don’t work from home. This is the strongest corner of the market.
- Owner-occupied buildings. If your own business fills most of the space, the loan is underwritten partly on the business — and terms improve markedly.
- Small suburban multi-tenant buildings with diverse local tenants, where no single vacancy sinks the income.
- Well-leased assets bought at today’s prices, where the basis is low enough that conservative numbers still work.
Expect conservative terms
Plan on 60–70% LTV, real reserves, and debt sized so income covers the payment comfortably. Half-empty towers and heavy repositioning plays are bridge-loan territory — funded against a credible lease-up plan, not hope.
A typical deal
A scenario I see often: a buyer picks up a small medical office building at two-thirds of its 2021 price. Four practices on long leases, one vacancy. At 65% LTV the income covers the debt with room to spare, and the vacant suite is pure upside.
Looking at an office deal?
Send us the rent roll and the price — we’ll pre-screen it within 24 hours and tell you what financing realistically looks like. Submit your deal, in English or Spanish.
By Andres Jara — Alpha Equity Lending (NMLS #1855083). 20+ years in real estate finance, an MS in Finance, and an active South Florida investor and landlord.
