Underwrite the opportunity
We review property performance, sponsorship, business plan, and financing priorities.
Medical Office capital
Medical Office Building Financing
Quick answer: Medical office buildings (MOBs) represent one of the most stable segments of commercial real estate, driven by the essential nature of healthcare services and the aging U.S. population. Lenders favor medical office properties for their creditworthy tenants (health systems, physician groups, insurance companies), long lease terms, and high tenant retention rates due to the cost of relocating specialized build-outs.
NationwideMarket coverage
1,000+Capital relationships
$2MM+CLS engagement floor
24 hoursInitial response
Property fit
Financing medical office assets.
Medical office financing benefits from the non-discretionary nature of healthcare demand, making these assets more recession-resistant than general office. Properties located on or near hospital campuses, with long-term leases to credit-rated health systems, attract the most competitive terms from life insurance companies and CMBS lenders. Outpatient surgery centers, dialysis clinics, dental practices, and specialty medical facilities each have unique underwriting considerations. Commercial Lending Solutions structures financing for the full range of healthcare real estate, from single-tenant physician offices to large medical campus developments.
Underwriting starts with the asset: income durability, tenancy or operations, physical condition, market position, sponsorship, and the proposed business plan shape the lender universe.
01
On-Campus Medical Office
02
Off-Campus Medical Office
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Outpatient Surgery Centers (ASC)
04
Dental & Orthodontic Offices
05
Dialysis Centers
06
Urgent Care & Walk-In Clinics
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Veterinary Hospitals
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Medical / Biotech Lab Space
Capital options
How we approach medical office financing.
We match the property, sponsorship, and business plan to lenders with current appetite, then compare proceeds, pricing, recourse, reserves, prepayment, and closing certainty.
| Financing path | Where it may fit |
|---|---|
| Life Insurance Company Loans | Long-duration fixed-rate capital for high-quality assets and experienced sponsors, generally with conservative leverage. |
| Bank Permanent Loans | Relationship-oriented capital that can offer local market knowledge and structural flexibility, with recourse often considered. |
| CMBS | Non-recourse execution with broad property appetite, balanced against more standardized servicing and prepayment provisions. |
| Bridge Loans | Flexible short-term capital for acquisition, lease-up, renovation, repositioning, or other transitional business plans before stabilization or sale. |
| Construction Loans | Draw-based financing for ground-up development, major renovation, or conversion, sized to budget, schedule, sponsorship, and the planned permanent exit. |
| Government-supported owner-occupied financing with program-specific eligibility, occupancy, and documentation standards. | |
| HUD / FHA Programs | Programmatic multifamily or housing capital with defined underwriting, documentation, and eligibility requirements. |
How we work
One process. Multiple capital sources.
The objective is not simply to find a lender. It is to create a credible, comparable set of financing choices around the transaction.
Property-level insight and lender appetite have to meet before pricing becomes meaningful.
Target active lender desks
The request is matched to capital sources that understand the asset and market.
Compare complete proposals
Rate, proceeds, recourse, reserves, prepayment, and execution risk are evaluated together.
Manage the closing
We coordinate lender diligence, third-party reports, documentation, and issue resolution through funding.
National reach
Market knowledge where the asset requires it.
We arrange medical office financing nationwide while accounting for local property fundamentals and lender appetite.
Questions
Medical Office financing, clarified.
The final structure depends on the property, sponsor, market, and requested execution.
Sizing your equity? See the down payment guide for commercial property: typically 20% to 30% down, with SBA owner occupied from 10%.
Lenders favor medical office buildings because healthcare is a non-discretionary service, making tenant demand recession-resistant. Medical tenants sign longer leases (7-15 years vs. 3-5 for general office) due to expensive specialized build-outs, creating stable long-term cash flows. Creditworthy health system tenants and the aging population driving healthcare demand further strengthen the lending thesis.
Medical office permanent loan rates typically range from 5.25% to 7.00%, which is generally 25-50 basis points lower than comparable general office properties due to the stronger fundamentals. Life insurance companies and CMBS lenders offer the most competitive rates for stabilized MOBs with long-term health system leases. Bridge and construction loans range from 7.00% to 10.00%.
Yes, significantly. On-campus or adjacent-to-hospital medical office buildings receive the most favorable financing terms because of the built-in patient referral network and tenant stability. Off-campus MOBs in healthcare corridors or near major medical centers also finance well. Standalone medical offices in suburban locations may face slightly higher rates and lower LTV limits.
Yes. Owner-occupied medical office buildings qualify for SBA 504 and 7(a) financing with as little as 10% down. This is ideal for physician groups, dental practices, veterinary hospitals, and specialty clinics purchasing their own building. SBA financing offers below-market fixed rates and 25-year amortization.
Medical office leases are typically NNN (triple net) or modified gross, with 7-15 year initial terms and multiple renewal options. Tenant improvement allowances are higher than general office due to specialized build-outs (plumbing, electrical, lead-lined walls for imaging). Lenders view these long leases and high switching costs favorably, often offering higher LTV and lower rates than general office.
Let's evaluate your medical office financing request.
Share the property and transaction. We will respond within 24 hours with an initial view.