Curated News
By: NewsRamp Editorial Staff
September 11, 2025
Office Financing Still Available for Right Properties Despite Market Challenges
TLDR
- Office financing remains available for strategic assets, offering competitive terms from regional banks and private funds for well-positioned properties with strong sponsorship.
- Lenders now require detailed underwriting including occupancy projections, tenant creditworthiness, and realistic stabilization plans with loan-to-value ratios of 50-60%.
- Continued office financing supports economic stability by enabling property repositioning and maintaining commercial real estate markets in evolving work environments.
- Medical office buildings and conversion projects in suburban markets are attracting lender interest despite broader office sector challenges.
Impact - Why it Matters
This news matters because it provides crucial insight for commercial real estate investors, developers, and property owners navigating the challenging office market. Understanding where lenders are still deploying capital helps stakeholders make informed decisions about property acquisitions, repositioning strategies, and financing approaches. For businesses considering office space, it indicates that well-located, strategically positioned properties continue to receive funding, suggesting stability in certain market segments. The information helps debunk the oversimplified 'office is dead' narrative and provides practical guidance on what actually gets financed in today's market environment.
Summary
Despite widespread skepticism about office real estate due to hybrid work trends and rising vacancy rates, financing opportunities still exist for the right properties. Priority Capital Advisory, a premier boutique debt and equity capital advisor, demonstrates this through their successful closure of four office financings totaling $75 million across different markets. The key to securing funding lies in having a thoughtful story, credible sponsorship, and lenders who understand nuance, with regional banks and private debt funds actively providing capital for well-positioned assets.
The office financing market has become highly bifurcated, favoring properties with strong fundamentals such as reset basis, strong leasing velocity, credit tenants, mixed-use repositioning, and medical office in undersupplied suburban submarkets. Lenders are implementing stricter underwriting standards, focusing on current occupancy, leasing velocity, tenant creditworthiness, cost basis, and realistic stabilization paths. However, capital remains available for lease-up plays, strong credit tenancy, medical office properties, and conversion/reposition projects that demonstrate operational soundness and strategic positioning.
While the broader narrative suggests office real estate is struggling, the reality is more nuanced. Properties with institutional discipline, compelling stories, and strong local market understanding can still secure competitive financing. The market may be thinner, but it's not closed, offering opportunities for well-located assets that can evolve with changing market dynamics. For more information, visit www.prioritycapitaladvisory.com to learn about innovative finance solutions.
Source Statement
This curated news summary relied on content disributed by citybiz. Read the original source here, Office Financing Still Available for Right Properties Despite Market Challenges
