Office Building Loans in 2025: Yes, People Still Go to Offices (and They Still Need Financing)

David Marsh
Jun 13
2 min read

Rumors of the office’s death have been greatly exaggerated. Sure, remote work exploded, Zoom became a verb, and yoga pants briefly out-earned suits. But in 2025, smart investors know: commercial office spaces are far from extinct — they’re evolving. And Grand Funding is here to help you finance that evolution.

Whether it’s a chic co-working loft in downtown Tempe or a professional plaza in Sacramento, office buildings are back on the radar for savvy real estate buyers. Why? Because flexible space is the new flex.

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The State of the Office Market in 2025

Let’s bust the myth: office space isn’t dead, it’s just different.

• Hybrid work created demand for smaller, modular, tech-ready spaces

• Medical offices, therapy practices, and boutique firms are expanding as demand for in-person services rebounds

• Repurposing is hot — think office-to-residential conversions or co-working hybrids

According to the Urban Land Institute’s 2025 Emerging Trends Report, suburban and mid-size city office space is seeing a revival — especially in areas with business growth, affordable rent, and flexible zoning.

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Office Loans: What They Are and How They Work

An office building loan is a commercial real estate loan used to finance the purchase, renovation, or refinance of office properties. These aren’t your cookie-cutter, 30-year-fixed deals — they’re tailor-fit, high-leverage, and built for business.

Loan types include:

• Conventional CRE loans (through banks or credit unions)

• SBA 504 loans (great for owner-occupied office buildings)

• Private capital (flexible underwriting, faster approvals — that’s where Grand Funding shines)

• Bridge loans (if you need short-term financing to reposition or renovate)

Terms often include:

• 5 to 25 year terms

• 70–80% LTV

• Rates from 6.5–9.5% depending on credit and occupancy

• Amortization or interest-only structures

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Who’s Borrowing Office Loans in 2025?

It’s not just corporate titans. In fact, it’s mostly not corporate titans.

• Law firms and medical practices wanting to own instead of lease

• Startups looking to build equity in a creative space

• Investors converting outdated office parks into mixed-use properties or executive suites

At Grand Funding, we see the potential where others see “For Lease” signs. Whether you’re an owner-occupant or just love the smell of commercial cash flow in the morning, we’ll get you funded.

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What You’ll Need

Lenders love a good spreadsheet — and you’ll need to bring one:

• Business plan or pro forma with income and expenses

• Credit score (usually 660+ for private capital, higher for bank loans)

• Down payment (20–30% is standard)

• Tenant info (if existing tenants are in place)

• Appraisal & inspection reports

Feeling overwhelmed? That’s why we exist. Grand Funding helps you package your deal so lenders lean in — not out.

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Bonus Tip: SBA 504 Loans = Secret Weapon

If you’re planning to use at least 51% of the space for your own business, SBA 504 loans offer: