Office Building Financing in DFW
Capital for suburban, urban, medical, and creative office assets across the Dallas-Fort Worth Metroplex.
- Medical office with strong healthcare tenancy
- Suburban office with long-term credit leases
- Owner-occupied office (SBA-eligible)
- Office value-add and repositioning deals
Office Building Loans, at a glance
- Loan size
- $1M – $200M
- Amortization
- 25–30 years
- Term
- 3, 5, 7, 10 years
- LTV
- Up to 70% (lower for weaker leasing)
- DSCR
- 1.35x–1.45x
- Rate
- Wider spreads reflect tenant/leasing risk
- Typical close
- 60–90 days
Office is the most nuanced commercial asset class to finance right now. The sector has bifurcated into winners and losers: trophy Class A towers with institutional tenants and long WALTs still attract capital; medical office buildings remain a lender favorite; creative office with strong creditworthy anchor tenants continues to trade. Everything else, Class B/C commodity suburban office, large-floorplate office with short lease rolls, empty shell buildings, is in a much more selective capital market.
In DFW the office lending story varies by submarket. Medical office anywhere in the Metroplex is still a favored sub-sector for life-co and CMBS lenders. Class A office in Uptown Dallas, Las Colinas, Legacy West, and Grapevine's State Highway 114 corridor trades through institutional execution. Secondary-market suburban office and older Class B stock in transition requires a different conversation, often with bridge debt or specialty lenders who can underwrite repositioning plans.
Medical office, still a lender favorite
Medical office buildings (MOBs) are the most financeable sub-sector of the office market by a wide margin. Healthcare tenancy is sticky, hospital systems are credit-rated, and the build-out costs for medical space create natural tenant retention. DFW has a particularly deep medical office market thanks to the major hospital systems (Baylor, Medical City, Texas Health, Parkland) and the density of medical users across the Metroplex.
Life insurance companies love MOBs. So do specialty REITs. So do CMBS conduits. The competition for quality medical office paper is intense, and rates reflect it, MOBs typically price inside traditional office by 25–50 basis points.
Non-medical office, the reality
For traditional multi-tenant office outside of medical and trophy Class A, the financing market has become much more selective. Lenders want short WALT properties priced as if they will need to re-tenant at lower rents and at significant TI/LC cost. Leverage has come down 10–15 points from pre-2023 highs, and some lenders have paused the sector entirely.
That said, deals still close. A well-located suburban office with a diversified tenant base, staggered rollover, and a sponsor willing to bring more equity can absolutely get financed. Bridge debt for repositioning plays is also available through debt funds that specialize in the current cycle. The key is honest underwriting, if the deal does not work at 65% LTV with conservative rent and lease-up assumptions, pushing for 75% is a waste of time.
Ready to explore Office options?
Get a QuoteOffice Building Loans, FAQ
Can I still finance a Class B office building in DFW?
Yes, but the conversation has changed. Expect 55%–65% LTV, higher DSCR thresholds, and more scrutiny on the rent roll and lease rollover. Assets with strong in-place credit, reasonable WALT, and solid trade-area demographics still attract bank and debt-fund capital. Weaker properties need more equity.
What's the best execution for DFW medical office?
It depends on the size and tenant mix. Large institutional MOBs (200K+ SF with hospital system anchor) go to life companies or specialty MOB debt platforms. Smaller MOBs (under 100K SF) are often better served by community or regional banks with relationship pricing. We quote both on every MOB file.
Is owner-occupied office financeable with SBA in DFW?
Yes. SBA 504 and 7(a) both cover owner-occupied office buildings where the business owner occupies at least 51% of the usable square footage. This is a common use case for DFW professional practices, medical, legal, dental, accounting, and the 10%-down economics make it attractive compared to leasing.
How are DFW office lenders underwriting in-place rents?
Aggressively conservatively. Expect underwriting to take in-place rents to a mark-to-market level 10%–20% below current, to assume longer lease-up times, and to factor in higher TI and leasing commissions than seller pro formas. A deal underwritten to those assumptions that still shows a 1.35x+ DSCR will get done.
Can I refinance office construction debt into a permanent loan?
If the building is stabilized with credit tenants and trailing cash flow, yes, through life-co, CMBS, or bank permanent. If the building is still leasing up, the refinance is typically into bridge debt with a longer runway to get to stabilization. We map the exit strategy on every office construction deal.
Other loan programs
SBA
SBA Loans
Government-guaranteed financing for owner-users buying, building, or expanding commercial property across North Texas.
- Loan size
- $150K → $15M
- Close
- 45–75 days
SBA 504
SBA 504 Loans
The only commercial loan product in the country that gives owner-occupiers a 20- or 25-year fixed rate on 40% of their purchase.
- Loan size
- $500K → $15M
- Close
- 60–90 days
SBA 7(a)
SBA 7(a) Loans
The most flexible small-business loan in the country, real estate, acquisition, equipment, and working capital in a single package.
- Loan size
- $50K → $5M
- Close
- 45–60 days with Preferred Lender
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