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✦Prime Rate:6.75%✦Fed Funds:3.64%✦5-Yr Treasury:3.88%↓✦10-Yr Treasury:4.25%↓✦30-Yr Treasury:4.83%↓✦30-Yr Mortgage:6.22%·Updated Mar 19, 2026✦Prime Rate:6.75%✦Fed Funds:3.64%✦5-Yr Treasury:3.88%↓✦10-Yr Treasury:4.25%↓✦30-Yr Treasury:4.83%↓✦30-Yr Mortgage:6.22%·Updated Mar 19, 2026
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Published: ·Last updated: ·By Ed Freeman, Capital Advisor — PeerSense

What is the best financing for medical office at 65% LTV?

Stabilized medical office buildings at 65% LTV qualify for CMBS non-recourse financing with fixed rates typically priced 6.75%–9% for stabilized assets, with the strongest sponsors at 60% LTV reaching 6.25% for 10-year terms. Healthcare tenants with long-term leases and specialized build-outs provide sticky occupancy that CMBS conduits value, resulting in tighter spreads than general office assets.

Published by PeerSense Capital Advisory · Written by Ed Freeman, Founder

Prime: 6.75% 10-Yr Treasury: 4.25% Est. CMBS Range: 6.25% – 11%+ (typical 6.75% – 9%)as of Mar 19, 2026
Medical Office

Medical Office CMBS Refinance

Stabilized medical office buildings at 65% LTV qualify for CMBS non-recourse financing from approximately 6.25% on the strongest stabilized deals (typical 6.75%–9%). Credit healthcare tenants, long-term leases, and mission-critical occupancy drive tightest spreads.

Minimum 30-35% equity required. Medical office building owners with 90%+ occupancy, credit healthcare tenants (hospital systems, large medical groups), and weighted average lease term of 5+ years.

Discuss Your Medical Office DealCall (317) 452-6990
KEY TERMS

Deal Parameters at a Glance

LTV Target

65%

Est. Rate Range

6.25% – 11%+ (typical 6.75% – 9%)

Term

5-10 years fixed

Recourse

Non-recourse

DSCR

1.25x minimum

Closing Speed

45-60 days

Min Loan Size

$3M

Loan Products

CMBS

FIT ASSESSMENT

When Is This the Right Fit?

This financing fits when your medical office building is 90%+ occupied with creditworthy healthcare tenants on leases with 5+ years weighted average remaining term. Medical office is one of the most favored CMBS asset classes because healthcare tenants invest heavily in specialized build-outs (imaging suites, surgical centers, labs) and rarely relocate. If your building is hospital-adjacent or on a hospital campus, you will receive the most competitive CMBS pricing available in the office sector. If occupancy is below 85% or lease terms are short, consider re-leasing before approaching conduits.

Want the full program overview, current rate sheet, and underwriting matrix? See the CMBS Loans guide →

ADVANTAGES

Key Benefits

Medical office trades at tighter CMBS spreads than traditional office
Healthcare tenants with specialized build-outs rarely relocate (95%+ renewal rates)
Non-recourse financing protects personal assets
Hospital-adjacent MOBs command premium CMBS pricing
10-year fixed rate locks in favorable terms through the next economic cycle
ALTERNATIVES

Strategic Alternatives

Mixed-Use CMBS 65% LTV

If your medical office building includes retail or residential components

Learn more

65% LTV Industrial Owner-User Financing

If you are a healthcare operator purchasing your own medical facility

Learn more

CMBS Balloon Maturity Refinance

If your existing CMBS loan is approaching balloon maturity

Learn more

Frequently Asked Questions

Medical tenants invest $50-$200+ per square foot in specialized build-outs (imaging, surgical, lab). This investment creates switching costs that make medical tenants far stickier than typical office tenants, resulting in higher renewal rates and more predictable cash flows.

See Related Rates by Program

PeerSense covers the full commercial capital stack. Rates and structures across our money pages — updated weekly.

SBA 7(a) & 504

5.50–11.75%

Up to $5M acquisition / real estate / equipment, 10% down

See current rates

Bridge Loans

9.00–14.00%

12–36 mo transitional, SOFR + 470-970 bps, 65-75% LTV

See current rates

DSCR Investor

5.95–8.50%

30-yr fixed rental, qualifies on property cash flow

See current rates

Equipment Financing

5.50–12.00%

Loan, lease, SBA 504, vendor, captive — Section 179 eligible

See current rates

Hotel Financing

5.85–11.75%

CMBS + SBA 504 + bridge + PIP across all flags

See current rates

Mezzanine Debt

11.00–18.00%

Subordinate to senior, $1M–$50M, capital stack fill

See current rates

Private Credit

7.80–18.00%

Non-bank flexibility, unitranche, recap, transitional

See current rates

Invoice Factoring + ABL

0.5–3.5% / 30d

B2B receivables, trucking / staffing / construction / govt

See current rates

No-Doc CRE

7.50–11.50%

Limited-doc commercial, asset-based underwriting

See current rates

Connect with PeerSense — Direct Capital Advisory

PeerSense pre-underwrites every deal before presenting it to our institutional capital sources. With 500+ lender relationships and live market rate intelligence, we match your medical office deal with the right capital source — right now.

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No upfront retainer · Fee at closing only · Complimentary initial consultation

Published by PeerSense Capital Advisory · Written by Ed Freeman, Founder. Updated March 2026.

Disclaimer: The information on this page is provided for educational purposes only and does not constitute financial, legal, or investment advice. Rates, terms, and availability are subject to change based on market conditions, property characteristics, and borrower qualifications. The rate ranges cited reflect approximate market pricing as of March 2026 and may not reflect current conditions at the time of reading. PeerSense is a capital advisory firm, not a lender. We do not originate, fund, or service loans. All financing is provided by third-party lenders subject to their own underwriting criteria and approval processes. Borrowers should consult with qualified financial and legal professionals before making any financing decisions.