Asset classes
Offices in transition: what is still financeable
Lease terms, tenant covenant, energy performance, capex requirement: how strongly each criterion weighs differs by lender and asset.
Offices are not dead, but the market has become more differentiated. Modern, well-located space with solid energy performance continues to be financed. For assets without a concept, raising capital has become more demanding.
What lenders look at
In office financings, remaining lease terms, tenant covenant, location, asset quality, energy performance, capex requirement, alternative use potential and the exit scenario can all be relevant. Weighting and requirements differ by lender and asset; there is no universal order of review.
Energy performance is no longer a side topic. It can affect both terms and willingness to lend, because many institutional buyers apply their own criteria and lenders underwrite the exit.
What a refurbishment means economically
There are no reliable blanket figures per square metre; costs depend on condition, building components, services, floor plates and market environment. What matters is whether the rent achievable after completion carries the investment.
Rental void during construction belongs in the calculation. It is regularly underestimated and can be among the largest single items in longer programmes.
Where we advise a decision
For secondary-location standing offices without a modernisation concept and with expiring leases, both financing and marketing can become considerably more difficult. How much so depends on micro-location, asset quality, conversion potential and buyer profile.
Owners of such assets should weigh the options deliberately: invest, convert or sell. Each option has a price — and so, usually, does keeping them open.
In short
There is no uniform bank checklist. Lease term, covenant, energy performance and capex interact — and are weighted differently from lender to lender.
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