Commercial Investment Properties

Commercial Investment chart with business man pointing up to show growth.

What are Commercial Investment Properties ?

Whether it is a retail unit or a full business park, we have the experience to find the right funder for your commercial investment requirements.

Commercial investment property is property that is rented out to a third party.

We also see instances where there is an “op-co” i.e. the main business that carries on the trade and a “prop-co” i.e. a separate company that owns the property. This structure can be advantageous because if anything happens to the “op-co” the assets of the “prop-co” are ring fenced and usually protected from creditors. Banks can still lend to these structures, normally as long as there is a market facing lease in place between the two entities.


Fundamentally lenders want the lend to be viable and therefore they look for good tenants who have a track record of paying rents on a regular basis.

On one end of the spectrum some lenders will only look at long term blue chip leases where the occupant is as close as possible to perfect. On the other end some lenders will provide funding based on “licences to occupy” i.e. there is a licence for the tenant to be in-situ but not a long term lease.

Lenders will want to know how long tenants have been in-situ and understand their viability. What the borrower and the lender don’t want is a big unit that is going to go void because either the tenant moves out or goes bust in the foreseeable future.

Ability to back fill any voids is important (Re-let risk) and a valuer will be asked for a likely timescale to re-let a void unit, alongside a track record of doing so by the owner, together with details of any rental incentives that are likely to be required e.g. free rent periods, contribution to fit-out etc.

Where there is a range of tenants, lenders might look at an averaged lease length i.e. taking all occupants into account how long are the majority in-situ for – this can determine the length of loan a funder will consider.

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Typically 65% loan to value is currently available – sometimes more for the right proposal.


As with all property lending a valuation fee, loan fee and legal costs will be incurred. Sometimes lenders require a solicitor to review the leases in place.

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