Buy or Refinance an Office Building You Occupy or Lease to Tenants
Buying the office your business will run from, refinancing the one you own or investing in a leased office building? AVANA’s office building loans cover all three through two programs. Apply once, and we match your property to the one that fits.
Soft quote in 1–2 business days. One application covers every AVANA program.
Which Office Building Loan Fits Your Property?
Conventional loans run from $1MM to $15MM, and SBA 504 finances projects up to $20MM total.
Your Business Occupies the Office
If your business will occupy at least 51% of the building, SBA 504 can finance up to 90% of the project. That includes buying the office you lease today.
The Building Is Stabilized and Leased
A conventional term loan buys or refinances an office building with proven rental income. It’s fixed for five years, with no prepayment penalty.
You Want to Refinance Your Office
SBA 504 can refinance an office your business has occupied for 2+ years. A conventional term loan refinances a stabilized, leased office with no prepayment penalty.
Office Loan Eligibility
- The property is an existing office building
- For SBA 504, your business will occupy at least 51% of the space and meets SBA size standards
- For Conventional, the building is stabilized and income-producing, and you have 3+ years of operating history
- Guarantors have a FICO score of 680 or higher
- Principals can provide a full-recourse guaranty for Conventional
What We Don't Finance for Offices
Ground-up construction of a new office building, under either program, and office buildings still in lease-up. SBA 504 doesn’t fund working capital, inventory or pure investment property. For a healthcare practice, see medical office loans.
What You Can Finance
- Buying an office your business will occupy
- Buying the office you lease today
- Buying a stabilized, leased office building
- Refinancing an owner-occupied office
- Refinancing a leased office at a fixed rate
Office Building Loan Programs
Up to 90% of project cost (85% special-use) and up to $20MM total, for an office your business occupies. The SBA debenture is fixed for up to 25 years.
$1MM–$15MM, up to 75% of value at 1.25x DSCR, with 25-year amortization. Fixed for five years at the 5-Year CMT + 2.00%–3.00%, with no prepayment penalty.
What Lenders Look at on an Office Building Loan
Office building loans turn on who occupies the space and how steady the income is. Expect questions on these five points.
Owner Occupancy
SBA 504 needs your business to occupy at least 51% of the building. If it occupies less, a conventional loan may fit, depending on the leases.
Rent Roll and Tenants
On a building you lease out, the rent roll shows how stable the income is. Send it with a T-12 dated within 90 days.
Debt Service Coverage
Conventional office loans need net operating income of at least 1.25x debt service. They go up to 75% of appraised value.
Operating History
Send 3 years of tax returns or historical financial statements. Conventional loans look for 3+ years of operating history.
Credit and Guaranty
Guarantors need a FICO score of 680 or higher. Conventional loans also need a full-recourse guaranty from the principals.
How Office Building Financing Works
Soft Quote
Send your application. You get a soft quote within 1–2 business days.
Letter of Intent
For Conventional deals that fit, a Letter of Intent typically follows.
Underwriting
Third-party reports and final credit approval. The appraisal, environmental report and property condition report drive most of the timeline.
Closing
About 30–45 days from a signed LOI for Conventional and about 45–75 days for SBA 504.
Why Borrowers Work with AVANA
What You'll Need
At Application
Last year’s tax return or financial statement, plus a trailing 12-month P&L and balance sheet.
During Prescreen
An executive summary or offering memorandum, and an organizational chart, which is required before a Letter of Intent.
Financials
3 years of tax returns or historical financial statements, a T-12 dated within 90 days, a debt schedule and the current rent roll for leased offices.
Each Guarantor
A personal financial statement with a schedule of real estate, a personal debt schedule, a resume and 3 years of personal tax returns.
Refinances
The current loan balance and status, prepayment penalty details and your cost basis. SBA 504 refinances also need 12 months of payment history.
Commercial Real Estate Loans We've Helped Close
Office Building Loan FAQs
Can I buy an office building with 10% down?
Yes, with SBA 504, if your business will occupy at least 51% of the building. The down payment rises to 15% for a startup or special-purpose property, and to 20% if both apply.
With a conventional loan, which goes up to 75% of value, plan on at least 25% down. See how the programs compare on our loan to buy commercial property page.
Can I get a loan for an office building I lease to tenants?
Yes, if the building is stabilized and income-producing. A conventional term loan buys or refinances it at up to 75% of appraised value, with 1.25x debt service coverage.
SBA 504 doesn't fund pure investment property, so it isn't an option for a fully leased building.
Can my business lease out part of the office building it occupies?
Yes, with SBA 504, as long as your business occupies at least 51% of the building. The rest of the space can go to tenants.
Underwriting still looks at your business's ability to repay from its own operations. Send the rent roll for the leased space with your financials.
Can I refinance my office building?
Yes. SBA 504 can refinance an office your business has occupied for 2+ years. A conventional loan refinances a stabilized, leased office at up to 75% of value.
Conventional loans have no prepayment penalty, so you can sell or refinance again without a breakage cost. See every option on our commercial mortgage refinancing page.
What if my office building isn't fully leased?
A conventional term loan is for a stabilized, income-producing property, so a building still in lease-up usually isn't a fit yet.
If your business will occupy at least 51% of the building, SBA 504 may work instead. Send an application, and AVANA will tell you which option fits.
Is the rate fixed on an office building loan?
Yes, under both programs. A conventional loan is fixed for five years at the 5-Year CMT + 2.00%–3.00%, and resets after year 5 on 10-year loans.
On SBA 504, the debenture rate is set at the monthly debenture sale and stays fixed for up to 25 years.
Get a Soft Quote on Your Office Building Loan
Tell us about the office, whether your business occupies it or leases it out, and the amount you need. We’ll come back with a soft quote within 1–2 business days.
Our Team
Chief Lending Officer