An office loan isn’t the same as a standard commercial mortgage. If you want to own, expand, or refinance your office building, you’ll want to know what sets these options apart and which one you need to start finding a lender for now.
In this guide, you’ll learn how office loans work and when they apply compared to other standard commercial mortgages. You’ll find the right path based on your goals and property type.
What Are Office Building Loans?
An office building loan is a type of commercial real estate loan (CRE)designed for one thing: helping you finance a space where business gets done.
Property investors use these loans to buy, build, or improve an office building. If you’ve ever walked through a quiet lobby or stared out over a skyline, there’s a good chance that building was backed by one.
Business owners, investors, and developers also use these loans to purchase, refinance, or renovate properties. These aren’t personal loans. They’re meant for commercial property, and the terms, structures, and approval processes reflect the stakes.
Some loans are short-term. A bridge loan gets you in fast while you sort out long-term plans. Others offer permanent financing with fixed or variable rates, longer amortization periods, and predictable payments.
While there are business loans, lines of credit, and SBA loan programs that support smaller projects or unique property types, office building loans stay focused. They’re purpose-built for acquiring or improving owner-occupied or investment property used for business.
Office Loans vs. Traditional Mortgages: Key Differences
At first glance, an office loan and a commercial mortgage might look the same. But if you’re buying a $2 million office building, the differences show up fast, in paperwork, payments, and what your lender expects.
Below is a side-by-side comparison to make the choice more straightforward:
| Category | Office Building Loan | Traditional Commercial Mortgage |
| Borrower Type | These loans are designed for business entities or commercial property owners. There may be complex ownership structures involved. | These are common loans that are often available to individuals or investors in multifamily, retail, or other kinds of commercial property. |
| Purpose | Apply for these loans when you want to acquire, improve, or refinance an office building | Apply for these loans when you have broader uses for different property types. For example: retail space, industrial floors, etc. |
| Recourse Structure | Often non-recourse (property stands as collateral) | Usually recourse (personal guarantees may apply) |
| Loan-to-Value (LTV) | Lower LTVs (65-75%) due to asset-specific risk | Higher LTVs possible, especially with SBA backing |
| Interest Rates | These loans may have higher interest rates; risk-based pricing | Competitive rates with longer borrower history and strong credit approval. |
| Loan Terms | These loans often come with flexible term loans, shorter amortization schedules | Longer terms (up to 25 years), typically with fixed or variable rate options |
| Underwriting Focus | Heavily tied to cash flow, lease terms, and tenant strength | Broader underwriting may include borrower assets and outside working capital |
| Collateral | Tied directly to the office property being financed | May allow cross-collateral or asset bundling across investment properties |
| Typical Loan Amounts | Often larger due to commercial scope | Can vary widely depending on loan programs or business needs |
| Origination and Fees | Custom to project type; some lenders charge higher origination fees | Often standardized, especially with banking institutions and FDIC-insured loans |
No matter what loan you need for your commercial property investment project, you’ll have a choice between traditional and private lenders. When it comes to major office building loans, going with private lenders can offer you some serious advantages.
Many traditional lenders have ironclad rules that prevent many investors from borrowing the money they need. These lenders may place especially heavy weight on factors like credit scores, even when the land is highly valuable on its own, and there is clear potential for a great return..
The staff administering loans at traditional lenders usually have no liberty to act on great opportunities. If your credit score isn’t good, you may not even be given a chance to demonstrate to a real person how valuable your office building investment could be.
Consider private lenders because they can assess your creditworthiness based on other factors involved in major office building deals. Private lenders like us are free to consider factors like the value of the land and buildings, the plan to profit, and more.
We have extensive experience assessing office building projects in Seattle and the surrounding area. Our office lending team considers each office loan application seriously and can provide more insight than most lenders on how these projects will likely pay off.
Secure an Office Loan Today with Pacific Northwest Capital Partners
At Pacific Northwest Capital Partners, we help business owners and investors throughout Washington find financing solutions that match their goals. If you’re buying, building, or refinancing a commercial building in the area, we have the experience and capital to help.
As completely private lenders, we’re free to invest in the projects that interest us. We choose to prioritize land value and the path to profit. That can mean fast approval for you, even if you don’t have a good credit score.
Explore our loan programs today! Check out our many related loans, including acquisition loans. Contact us to speak with a lending advisor today.
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