How much down payment is typical for commercial real estate?

It varies by program, property type and borrower profile. Owner-occupied SBA structures generally require less than conventional investment financing, but no fixed figure applies to every deal.

Can I finance a property I will lease to tenants?

Investment property is usually financed conventionally rather than through SBA owner-occupied programs. We help identify the appropriate channel.

How long does commercial real estate financing take?

Typically longer than other business financing because of appraisal, title and environmental steps. Timelines depend on the lender and the property.

Do you help with construction projects?

Yes — we support the preparation side, including budgets, projections and documentation for ground-up or renovation projects.

Commercial Real Estate

Commercial Real Estate Financing Support

Buying, refinancing or building the property your business operates from — with the documentation lenders expect.

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The short answer

Commercial real estate financing covers the purchase, refinance, construction or improvement of business property. Owner-occupied projects are frequently structured through SBA 504 or 7(a); investment property typically uses conventional commercial lenders. Requirements usually include a down payment, appraisal, environmental review and evidence that the property's or business's cash flow supports the debt. OCS prepares and coordinates that package.

Reviewed by Joe Maldonado, OCS founder and former commercial banker with more than 20 years of commercial transaction experience.

Owner-occupied focus

When your business occupies the majority of the space, SBA structures often become available.

Longer timelines

Appraisal, title and environmental review take time. We prepare for that from the start.

Cash-flow analysis

Debt service coverage drives the decision. We model it before the lender does.

Construction and improvement

Ground-up and renovation projects need budgets, contractor documentation and contingency planning.

Property types we support

Warehouse, industrial and flex space
Retail and mixed-use buildings
Office and professional condominium units
Restaurants and hospitality properties
Medical and specialty-use facilities
Owner-occupied expansion or relocation projects

What the lender will require

Purchase contract or letter of intent
Down payment or equity contribution documentation
Business and personal financial statements and tax returns
Rent roll and leases for any tenant-occupied space
Appraisal, title work and environmental assessment
Projections showing the debt can be serviced

SBA 504 for owner-occupied property

The SBA 504 program is commonly used for owner-occupied real estate and long-life equipment, typically combining a bank loan with a Certified Development Company debenture and a borrower contribution.

Eligibility, occupancy requirements and structure are set by SBA and participating lenders. OCS prepares the business plan, projections and supporting package that the program requires.

Realistic planning

Commercial property transactions rarely move quickly. Building a realistic timeline into your contract — with adequate due diligence and financing contingencies — protects your deposit and your negotiating position.

Optimum Capital Services, LLC. is a business consulting and access-to-capital advisory firm. We are not a bank, direct lender or government agency. All financing is subject to third-party lender approval and program eligibility.

FAQ

Frequently asked questions

Start with a Funding Assessment

Share your business situation and we will walk you through which capital options are realistic, what documentation lenders will expect, and how to prepare a stronger submission.

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OCS is an advisory firm. Financing is subject to third-party lender approval and program eligibility.