OFFICE PROPERTIES AND INDUSTRIAL BUILDINGS

There are three general types of office properties. High rise down town buildings. These are large and have a large number of usually substantial tenants. The spaces occupied and the length of existing leases will run in a range. What is important from the standpoint of financing this kind of property is the occupancy history and the stability of the cash flow of the property.

Suburban office properties, usually smaller in size, may be a single building or a group of buildings in a park like setting. Here again it is the underlying leases and the historic income that will control financing. Also some buildings may be special purpose like medical uses situated near medical centers. The third type are single tenant or owner user properties. 

Industrial properties are similar to office properties. The major difference is that the individual tenants tend to occupy more space. Also the tenant improvements are usually done by the tenant and therefore the leases often have a longer duration. Many industrial buildings are single tenant or are owner occupied.

For larger loans the CMBS lenders are active. Smaller loans tend to go to the banks. SBA is available for owner occupied buildings. Credit Tenant Lease Financing is available for single credit tenants. Construction loans in most areas.