(513) 621-1031 info@NetLeaseX.com
  1. Home
  2.  » 
  3. Property Financing
  4.  » 
  5. Office
  6.  » Loan Underwriting Guidelines

Office – Loan Underwriting Guidelines

Please incorporate the below minimum guidelines when you prepare and submit your proforma for underwriting approval:

 Rental Income:Based upon current rent roll annualized with vacant space calculated at market rents
(+)Other Income:Must be supported by historical collections
(-)Vacancy:Equal to the greater of the actual vacancy plus 1% credit loss, market vacancy plus 1% credit loss or 10%
(-)Management:Equal to the greater of the actual management fee of 5%
(-)Operating Expenses:Should be supported by previous two (2) years and current year-to-date expenses
(-)Capital Reserves:Typically $.20 per square foot minimum, depending upon property age and condition
(-)Leasing and Tenant Improvement Reserves:Reserves subject to market rates applied to rollover tenants, commissions and tenant improvements.  Additional reserve deposits may be required based on anticipated rollover costs.
 Equals:Net operating income