Office and administrative buildings
Lease duration, tenant quality and the ESG profile influence pricing. Transitional structures can fund repositioning before re-letting.
Service · Commercial property finance
Commercial Real Estate Finance: Assets and Portfolios
Commercial lending depends on lease duration, tenant creditworthiness and alternative-use potential. Alternate Capital structures finance from €750,000 to €180 million for investors, portfolio owners and businesses in Germany, Austria and Switzerland.
Asset classes
Commercial assets we help finance
Each asset class has different lenders and assessment priorities.
Retail and local shopping centres
Food retail anchors and long leases can support lender appetite for retail parks and local shopping assets.
Logistics and light industrial
Location, building specification and suitability for alternative occupiers are central to lender assessment.
Operational real estate
The lease, operator creditworthiness and operating concept are central. Specialist lenders assess these assets differently from conventional banks.
Residential and commercial buildings
A mixed-use asset requires assessment of both components. An appropriate structure can support competitive terms.
Portfolio finance
Several properties within one facility, including cross-collateralisation, property substitution clauses and staged releases.
Lender assessment
How lenders assess commercial property
The starting point is sustainable cash flow: How secure is the rent, how long do the leases run, and what happens when they expire? These questions drive the key metrics of commercial property finance: debt service coverage (DSCR), interest service coverage (ISCR), loan-to-value and weighted average lease term (WALT).
Property factors also matter: suitability for alternative users, condition and ESG requirements, including energy certificates and CRREM pathways, alongside sponsor quality. Commercial finance is therefore more individual than residential lending. It requires structured negotiation rather than a standard rate table. We support this through preparation and approaches to banks and debt funds.
- Cash flow metrics: DSCR from approximately 1.2–1.3, depending on asset class and leverage.
- Leverage: indicatively 55–70% LTV, often lower for operational properties.
- Lease analysis: weighted average lease term, indexation, break options and incentives.
Structures
Structures from acquisition to repositioning
Case 01
A core acquisition with long leases
A conventional Senior loans with a long fixed-rate period can provide lower-cost finance for stable assets and creditworthy tenants.
Case 02
Value-add and repositioning
Transitional finance with a capital expenditure facility, using a Whole loans or Bridge finance until re-letting is stabilised, followed by investment property finance.
Case 03
Portfolio refinancing
Combine maturing loans, substitute properties and assess available borrowing capacity, supported by Refinancing and Additional borrowing.
Case 04
Commercial development
Land, construction and pre-letting, with a project structure comparable to Property development finance and an exit through a forward sale or long-term ownership.
For businesses
Business premises: buying or borrowing against an operating property
Commercial finance also serves businesses seeking to acquire their premises rather than rent, or to release equity through an alternative to sale and leaseback by borrowing against the property.
Borrowing retains ownership of the property and can provide working capital or funding for expansion without a sale. The business still needs to demonstrate sustainable debt servicing capacity.
Frequently asked questions
Commercial property finance: quick answers
What documents are needed for an enquiry?
Property particulars, a tenancy schedule with lease terms, rental and service charge information, any valuation, available equity and the preferred structure. To start, use our Initial assessment.
Can vacant properties be financed?
Yes, through value-add structures supported by a realistic letting plan. Leverage is generally lower and pricing higher; after stabilisation, the asset can move to longer-term investment finance.
How does ESG affect financing?
Energy efficiency and refurbishment pathways increasingly influence valuations, margins and lending appetite. Some green loan programmes offer pricing benefits. We assess suitability.
Do you also finance property in Austria and Switzerland?
Yes. Germany, Austria and Switzerland are our focus. Further details for Austria: Property finance in Austria.
ESG and the future
Commercial property finance and ESG
Energy efficiency, emissions and refurbishment plans have become important lending criteria. Lenders increasingly consider the risk of stranded assets: buildings that may fall behind future requirements and lose value or letting appeal.
Inefficient assets can become more costly to finance or harder to refinance. Green loans and funding programmes may provide opportunities for owners investing in improvements. A credible refurbishment pathway or certification such as BREEAM, DGNB or LEED can support lender discussions.
We assess relevant green loan providers, how energy-related capital expenditure can fit within the facility and which funding programmes may be suitable.
Including the building’s condition and a realistic improvement plan from the initial enquiry helps lenders understand the future cash flow and investment need. We bring the ESG assessment into the first approach.
We consider whether a green loan or KfW or regional funding programme is appropriate and assess the financial effect of energy improvements over the financing term. This can support both funding discussions and the asset’s longer-term marketability.
Thus, the ESG requirement becomes a double benefit: better financing conditions today and a value-stable, future-proof property tomorrow.
Next step
Finance or refinance a commercial property
Send details of the property, tenancy position and plans. We will assess suitable lenders and financing structures.
About the author
Jürgen Kronawitter
Jürgen Kronawitter specialises in structured real estate finance. He helps property investors, developers and portfolio owners implement complex financing solutions. His work focuses on structuring and arranging senior loans, whole loans, mezzanine capital and bridge loans, as well as tailored financing for acquisitions, investment properties, developments and refinancing. By combining conventional bank lending with alternative capital sources, he develops financing structures for domestic and international property projects.
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