Office property

Smart-risk lending solutions for office property owners and developers

No two office properties are alike. Some are skyscrapers, while others are smaller buildings.

No matter the size or building amenities, First National has the scale to provide the right capital on the right terms to property owners.

Office assets we finance

Throughout our history of lending across Canada, we have amassed significant experience and selectively participate in these office asset types:

Class “A” Office – building location is considered premier with high market perception standards. Buildings typically have excellent finishes, multiple amenities, and high efficiencies
Class “B” Office – building location is considered excellent with medium market perception standards. Buildings typically have good finishes, some amenities, and medium efficiencies
Class “C” Office – building location is considered poor with low market perception standards. Buildings typically have fair finishes, few amenities, and low efficiencies

Standard Financing

First National’s standard financing programs are favoured by borrowers who look to acquire a new property or refinance an existing building. Loan terms typically range from three to five years, have a fixed interest rate, and are closed to prepayment for the term’s duration.

Bridge financing

First National’s bridge loan terms usually range from three months to three years, include floating interest rates and allow some form of early prepayment. Borrowers choose this solution until standard financing is secured or while they contemplate a property sale, a change in ownership structure or enhance their tenant roster.

Asset repositioning

First National enables owners to access a property’s equity for a short term, typically two years or less, to fund capital improvements or repairs without the need to raise capital from personal sources or less flexible, higher-cost alternatives.

Secondary financing

A First National second mortgage enables borrowers to access property equity and use it to purchase another asset or renovate/repair their existing property.

Construction financing

A First National construction loan provides funds to cover the cost of building or rehabilitating a property with terms typically of three years or less.

Smart risk solutions in action for office

See how we’ve applied our financing products innovatively to help office borrowers achieve their goals with performance and value.

To repay the current maturing loan and to provide additional capital to continue the reinvestment into the property.

$3 Million
10 units
Ottawa, Ontario

Conventional first mortgage
3 years term, interest only amortization for 18 months, then 25 years
LTV: 75.4%"

Equity shall be used to facilitate the acquisition

$21 Million
124,662 sq. ft.
Calgary, Alberta

Conventional Mortgage
7 years term, 25 years amortization
LTV: 54.00%

Refinance a first and second mortgage

$94 Million
176,624 sq. ft.
Vancouver, British Columbia

Bridge loan/construction takeout financing
2 years term, interest only amortization
LTV: 52.7%

To refinance existing debt on the subject property and to provide equity for capital improvements at the subject property

$4 Million
30,181 sq. ft.
London, Ontario

Conventional loan financing proposal
5 years term, 25 years amortization
LTV: 69%

Construction financing for an eight level office building

$75 million
137,800 sq. ft.
Vancouver, British Columbia

Conventional first construction mortgage
3 terms years, interest only amortization
LTV: 48%

Provide acquisition financing for office building for purchase

$7 million
27,911 sq. ft.
Bolton, Ontario

Conventional first mortgage
5 years term, 25 years amortization
LTV: 67%

Provide a 5 year term loan for refinancing and recuperating equity invested in CAPEX

$4 million
14,939 sq. ft.
Montreal, Quebec

Conventional first mortgage
5 years term, 25 years amortization
LTV: 72%

Providing funds required to refinance the current loan and provide funds for future capital expenditures

$4 million
198,093 sq. ft.
Windsor, Ontario

Conventional first mortgage
5 years term, 25 years amortization
LTV: 48%

View all recent financings

Latest resources and insights

Original perspectives and personal viewpoints on developments and industry trends in commercial real estate.

Growth, Value and Risk

Bank of Canada brings its benchmark interest rate down 50 basis points to 3.25%

The Bank of Canada tied a bow on 2024 by cutting its policy interest rate once again today to 3.25%. This latest 50 basis point drop – coming on the heels of reductions in June, July, September and October – is welcome news.

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Expert insights

A distinctly Western Canadian view of the year in commercial real estate financing

Activity in 2024 was bifurcated. In the first half of the year, overall real estate investment activity was relatively muted as interest rates remained in restrictive territory.

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Borrower perspectives

Borrower Perspectives: Rob Piroli, President, Piroli Group

Founded in 1992 in Leamington, Ontario, Piroli Group started in general contracting (under the name of Piroli Construction) but has evolved into a multi-faceted development group.

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Capital Markets update

Market Commentary: A catch-up and overview of the markets

First National’s, Jason Ellis, provides an overview as well as an update of the markets including rates, Government announcements and changes to the Commercial mortgages. Read an overview here.

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Sign up for Market updates

Economic and political developments – both in Canada and globally – can impact the commercial real estate market. First National experts follow these trends closely and provide honest, real and professional perspectives into what they could mean for your portfolio.