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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.