Office Buildings Commercial Loans

Office Buildings- Office buildings are differentiated from retail buildings in that they are considered a *ldquo;destination business” and are not reliant upon “outside foot

traffic” to be profitable. Newer office buildings or well-maintained office buildings get significantly more favorable commercial-financing terms than older buildings. Additionally,

whether or not an office building relies on just one key tenant or several tenants also plays a role in the financing terms offered. If a building relies on a single tenant for its profitability, it will be important to determine the financial strength of that single

tenant in order to determine the financing options available. Think of it as a “putting all your eggs into one basket” type of approach. Whereas, if there are several long-term tenants in the office building, then the potential for significant income interruption is lessened in the event a tenant or two were to leave the building.