Office stabilisation finance: holding a building through leasing to a stabilised income
We arrange stabilisation finance for owners carrying a refurbished or newly built office through its leasing window to a stabilised income. With rising availability and a sharp prime to secondary divide, lenders price offices on the lease-up risk between completion and stabilised income, so stabilisation finance holds the asset through leasing until occupancy and rents support an investment refinance. This is finance against the building and its income, not a regulated mortgage on a home.
Stabilising offices
An office building is valued on its stabilised income, the rent it earns once let to a credible occupier base at market terms, rather than on day-one bricks and mortar. A newly completed or comprehensively refurbished office often delivers with vacant or part-let floors, and the gap between that day-one position and a stabilised, fully-let income is where the financing risk sits. Stabilisation finance exists to carry that gap.
Stabilisation finance for offices is the facility that holds a building through its leasing window to a stabilised income. With rising availability and a pronounced prime to secondary divide, lenders price refurbished and new-build offices on the lease-up risk between completion and stabilised income, so the bridge funds the asset through leasing until occupancy and rents are proven. It sits after development, refurbishment or acquisition debt and before a senior investment term loan or a sale.
Lenders underwrite an office stabilisation loan on the quality and location of the building, the depth of occupier demand, the leasing strategy and the credibility of the exit, then size loan to value during lease-up and test the debt yield and interest cover the emerging rent roll supports. The prime to secondary divide is central: a best-in-class building in a strong submarket leases quickly, while secondary stock carries more lease-up risk. Prime City net initial yields sit at 5.25%, with prime West End at 3.75% (Savills, Q4 2025), anchoring the stabilised valuation the leasing is working toward.
We present the building, the leasing plan and the rent evidence so stabilisation lenders can price the bridge, then structure the route onto investment term debt or a sale. Central London offices are in recovery, with take-up rising into late 2025 and overall vacancy at 7.8%, down 40 basis points year on year (Savills, Q3 2025); CBRE forecasts prime City rental growth of 4.6% in 2026. That recovering occupier market supports the exit for a well-let, stabilised building.
What we fund
- Newly completed offices delivering with vacant or part-let floors
- Comprehensively refurbished offices re-leasing
- Repositioned secondary stock upgraded for new occupiers
- Part-let buildings leasing the balance to stabilise income
- Acquisitions bought with an asset-management leasing plan
- Stabilised, well-let offices refinancing onto investment debt
Indicative terms
- Loan to value (lease-up)Indicative ~60 to 70% during leasing
- TermShort-dated, through the leasing window
- Debt yieldTested against the emerging rent roll
- Interest coverSized on net rent as floors let
- Day-one to stabilisedBridge priced on the lease-up value gap
- Key testsBuilding quality, location, demand, leasing plan, exit
- ExitInvestment term refinance or sale once let
Indicative only. Terms vary by lender, asset and scheme and are not an offer of finance.
How we arrange an office stabilisation bridge
We arrange the office stabilisation bridge around the leasing window and pre-agree the exit. For a newly completed or refurbished building delivering with vacant or part-let floors we place a short-dated facility, indicatively around 60 to 70% of value during lease-up, that holds the asset while floors let and the rent roll builds. Where Category A or tenant fit-out and capex are part of the leasing plan, we can structure the facility with staged drawdown so capital is released against works as floors are readied and let, rather than all at once. Because rental cash flow is light while floors are vacant, interest is often rolled so debt service does not outrun the building's cash flow during lease-up. Where development, refurbishment or acquisition debt is maturing before the building is let, we refinance onto a stabilisation loan that funds the leasing period rather than forcing a sale at a vacant-possession value. We size against the debt yield and interest cover the emerging rent supports, weigh the prime to secondary divide and the leasing strategy, and structure the route onto a senior investment term loan or a sale. We frame every figure as indicative and never as an offer; the terms depend on the building, the demand and the exit.
What lenders assess on an office mid lease-up
Lenders underwrite an office stabilisation loan on the quality and location of the building, the depth of occupier demand, the leasing strategy and the credibility of the exit, then size loan to value during lease-up and test the debt yield and interest cover the emerging rent roll supports. The prime to secondary divide drives appetite: a best-in-class, well-located building leases quickly and attracts keener terms, while secondary stock carries more lease-up risk and is priced accordingly. Specialist commercial bridging and stabilisation lenders, debt funds and challenger banks compete here, with the cheapest investment term debt arriving once the building is let. As a broker with no exclusive tie, we present the building and the leasing plan to the lenders most comfortable with office lease-up risk rather than steering every case to one name.
From a stabilised rent roll to an investment refinance
An office stabilisation loan is repaid once the building is let and the rent roll is proven, at which point a stabilised valuation supports a senior investment term loan or a sale. Prime City net initial yields sit at 5.25%, with prime West End at 3.75% (Savills, Q4 2025), so a well-let building converts a part-let day-one value into a materially higher stabilised value, though the prime to secondary divide keeps secondary lease-up risk in focus. Central London offices are in recovery, with take-up rising into late 2025 and overall vacancy at 7.8%, down 40 basis points year on year (Savills, Q3 2025), and CBRE forecasts prime City rental growth of 4.6% for 2026. For a stabilisation lender, that recovering occupier market and a clear leasing plan make the refinance or sale a credible, well-evidenced exit.
Finance that suits this asset class
- Stabilisation bridge financeHolds a refurbished or new-build office through leasing to a stabilised income.
- Refurbishment-to-stabilisation financeFunds the upgrade and the leasing that follows in one structured route.
- Development exit financeRepays development debt at completion while the building lets up.
- Bridge-to-term financeStructures the route from the leasing bridge onto an investment term loan.
- Senior investment term loansLong-term debt on the stabilised, well-let building.
Stabilising offices?
A view on fundability within one working day.
Frequently asked questions
What is office stabilisation finance?
Office stabilisation finance is a short-dated facility that holds a newly built or refurbished office building through its leasing window to a stabilised income. A finished office often delivers with vacant or part-let floors, so the bridge funds the asset while floors let and the rent roll builds, until occupancy and rents support an investment refinance or a sale. It is finance against the building and its income, not a regulated home loan.
How does office building finance work across stabilisation?
It follows the lifecycle: development, refurbishment or acquisition debt funds the building, a stabilisation bridge holds it through leasing, and a senior investment term loan or a sale takes out the bridge once it is let. We arrange the stabilisation leg, sizing loan to value, debt yield and interest cover against the emerging rent roll, weighing the prime to secondary divide, and pre-agreeing the exit before the bridge is advanced.
Can I get a 100% commercial mortgage on an office?
No. Commercial and stabilisation lending on offices is sized against value and income, not at 100%, with stabilisation leverage during lease-up commonly indicative of around 60 to 70% of value depending on the building, demand and the exit. Lenders size against the debt yield and interest cover the rent roll supports. Additional capital above senior debt can sometimes be arranged through mezzanine or equity, but the senior loan is not full-value.
Do you need a deposit to finance an office building?
Yes. Commercial stabilisation finance funds a share of value, indicatively around 60 to 70% during lease-up, so the sponsor contributes the balance as equity. The exact leverage depends on the building, the leasing plan and the strength of the exit, and lenders size it against the debt yield and interest cover the emerging rent roll supports. We frame leverage as indicative only and never as an offer.
How do lenders treat a part-let office?
Lenders price a part-let office on the lease-up risk: the quality and location of the building, the depth of occupier demand for the vacant floors, the leasing strategy and the exit. Prime, well-located stock leases quickly and attracts keener terms, while secondary stock carries more risk amid rising availability. They size loan to value during lease-up and test the debt yield and interest cover the emerging rent roll supports as floors let.
When is an office building stabilised?
An office is treated as stabilised once it is let to a credible occupier base at market terms and the rent roll is proven rather than forecast, the point at which a valuer capitalises the income at a market yield and a long-term lender refinances the stabilisation bridge. With prime City net initial yields at 5.25% (Savills, Q4 2025), reaching a stabilised, well-let position is what converts a part-let day-one value into a refinanceable one.
Is office stabilisation finance a bridging loan?
Yes, it is a specialist commercial bridging loan written for the leasing window of a refurbished or new-build office. It is short-dated and repaid from a defined exit, but the exit is a stabilised, well-let rent roll and an investment term refinance or sale rather than a quick resale. We can structure the facility with staged drawdown for fit-out and capex and roll interest while floors are vacant, then route the building onto senior term debt once it is let. We are a broker, not a lender, and frame every figure as indicative and never as an offer.
Stabilising offices?
Tell us about the asset and the income plan and we will come back with a view on fundability and likely terms.