PASSYCAPITAL

Office · Nationwide

Office real estate financing.

Bridge, renovation, and conversion financing for office properties across the US. Trophy Class A, value-add repositioning, and adaptive reuse to residential or mixed-use. $1M to $50M+.

By David Hodara ·

$1M-$50M+

Loan range

24-48h

Term sheet

60-65%

Class A LTV

Repositioning focus

Class B/C

office market context

Office is the most bifurcated CRE asset class in the US in 2026. Trophy Class A in prime locations (Manhattan Park Avenue, Century City, La Jolla, Boston Back Bay) has stabilized rents and occupancy. Older Class B and Class C in central business districts (especially San Francisco, Chicago Loop, parts of Manhattan) face structural vacancy from hybrid work and tenant flight to quality. The asset class is being actively repriced.

Financing dynamics reflect this bifurcation. Trophy Class A remains financeable at moderate leverage with credit-tenant rent rolls. Class B and C are typically only financeable for repositioning (workspace conversion, tenant improvement program) or full conversion to residential or mixed-use. Pure stabilized hold financing on Class B/C in challenged CBDs has thinned dramatically.

Office-to-residential conversion is an active sub-segment with municipal incentive programs in NYC (467-m tax abatement), Chicago, Los Angeles, and others. Construction-style financing for conversions requires feasibility study, entitlement clear, sponsor experience with adaptive reuse, and a clear permanent exit.

Office financing by state

State-specific dynamics affect every office deal — insurance, property tax, rent regulation, entitlement timelines, lender pool composition. Browse the per-state pages.

office FAQ

Is office still financeable in 2026?

Yes, with sharp lender selectivity. Trophy Class A in prime locations remains financeable at moderate leverage. Class B/C is typically financed for repositioning or conversion rather than stabilized hold. Each lender's appetite varies materially by submarket and asset profile.

What's typical leverage on office bridge?

55-65% LTV on Class A stabilized with strong rent roll. 45-55% on Class B/C value-add or transitional. Conversion loans price separately based on entitlement status, sponsor experience, and exit plan.

Are office-to-residential conversions financeable?

Yes, increasingly active. NYC OTRR (Office Conversion Accelerator) + 467-m tax incentive, LA Adaptive Reuse Ordinance, and Chicago LaSalle Street Reimagined program support qualifying conversions. Construction lenders want entitlement clear, structural assessment, and sponsor track record on conversions.

How does WALT (weighted average lease term) factor into underwriting?

Heavily. Properties with WALT under 3 years face significant rollover risk and price conservatively. Strong WALT (5+ years) with credit tenants unlocks the most favorable terms. Lenders stress-test for known move-outs at lease expiration over the next 24-36 months.

Got a office deal? Send it over.

Term sheet inside 48 hours, or a clear no so you can move on.