Conventional
Bank or other conventional credit may fit an asset and sponsor when property cash flow, collateral and loan structure support review.
03 / Commercial Real Estate
Sector-specific capital, structured precisely.
Financing across office, retail, industrial, hospitality, mixed-use and specialty assets through capital channels appropriate to the property, sponsor and plan.
Property Types
Start with the asset.
Duke can advise on these commercial property categories. The category alone does not determine whether a particular transaction is financeable.
- 01
Office
Single-tenant, multi-tenant and owner-occupied office assets call for review of lease terms, occupancy, cash flow, market and sponsor.
- 02
Retail
Retail review centers on the tenant mix, income durability, lease obligations, location and property operations.
- 03
Industrial
Warehouse, logistics, manufacturing and flex properties can involve different tenant, functional-use and condition considerations.
- 04
Hospitality
Hotels and lodging require close attention to operating history, management, market, property condition and business plan.
- 05
Mixed-Use
Multiple uses and income streams require an underwriting view that accounts for each component of the property.
- 06
Specialty Assets
Self-storage, medical office and other specialized assets warrant a case-by-case review of use, operations and capital fit.
For an apartment-led transaction, see Duke’s Multifamily financing page.
Financing Structures
The structure follows the file.
Duke sources and evaluates financing channels against the actual asset, tenancy, income and execution plan. No path is available for every property.
Bridge
Transitional financing can be evaluated for a defined renovation, lease-up, acquisition or refinance plan with a supportable exit.
CMBS
A commercial mortgage-backed securities channel may be considered for suitable income-producing property; its underwriting and documentation differ from a bank path.
Private Credit
Private capital may be appropriate for some asset or execution needs, subject to the lender and transaction-specific review.
Construction
Development or substantial-rehabilitation financing depends on project scope, feasibility, budget, sponsor capacity and completion plan.
Permanent Financing
Longer-term financing can be evaluated against supported operations, value, occupancy and the intended hold strategy.
Refinance
Existing debt, current income, property value and the use of new proceeds shape a refinance or recapitalization review.
Common Capital Scenarios
One asset, different capital needs.
These are educational scenarios, not Duke transactions or offers of capital.
- 01
Acquire an operating asset
Compare the acquisition request with current leases, underwritten income, sponsor equity and the intended hold.
- 02
Refinance or recapitalize
Examine the existing debt, supported value, cash flow and reason for new capital before selecting a channel.
- 03
Bridge through transition
A vacant, underleased or improving asset may need time and a credible business plan before longer-term financing is reconsidered.
- 04
Improve tenant space or the asset
Tenant improvements and capital work need a budget, lease assumptions, available cash and a way to assess their effect on operations.
- 05
Build, then stabilize
Construction financing and a later permanent path are separate decisions, each subject to the project and future underwriting.
Underwriting Considerations
Income is only part of the story.
Cash flow, leases, condition, sponsor capacity and the requested structure all matter. These measures are review tools, not Duke-specific minimums.
Cash flow & debt
- NOI
- Net operating income: property income after operating expenses and before debt service, based on supported operations and adjustments.
- DSCR
- Debt-service coverage ratio: underwritten NOI divided by annual debt service. The income and payment basis can vary by capital source.
- Debt Yield
- Underwritten NOI divided by the proposed loan amount, expressed as a percentage. It examines income relative to requested debt.
- LTV
- Loan-to-value: proposed debt compared with a supported property value. Value, condition and loan structure matter.
Tenancy & the asset
Occupancy, tenant concentration, lease rollover and weighted average remaining lease term help show how income may change. Property condition, local market and location complete the asset review.
Sponsor & structure
Sponsor experience and liquidity, requested leverage, use of proceeds, recourse or non-recourse expectations, business plan and sale or refinance exit affect which channels may be realistic.
Where the Deal Fits
A capital path starts with the transaction.
Duke evaluates the complete file before recommending where to take it. An asset label or a single ratio is not a lender decision.
- 01 / ASSETProperty type, condition and location
- 02 / TENANCYOccupancy, leases and income durability
- 03 / SPONSORBorrower capacity and experience
- 04 / REQUESTLeverage, proceeds and execution needs
- 05 / PLANImprovement, hold and exit strategy
Advisory Review
Then choose a realistic channel.
Duke compares the file with suitable conventional, bridge, CMBS, private-credit, construction or other capital paths and connects the borrower with appropriate lenders and capital sources. Structure and availability are confirmed case by case.
Discuss the StructureThe Process
Position the deal for review.
Duke works with the property and borrower information, then coordinates with the selected capital channel. Learn more about Duke’s approach.
- 01
Understand the file
Review the asset, leases, operating performance, sponsor, use of proceeds and execution requirements.
- 02
Position the request
Evaluate structure-appropriate conventional, bridge, CMBS, private-credit, construction or other paths and prepare the financing story.
- 03
Coordinate execution
Connect with appropriate lenders and capital sources, then coordinate term review, diligence, underwriting and next steps.
Common Questions
Before the first review.
Does Duke finance every commercial property type?
No. Duke can review the listed asset categories, but a financing path depends on property operations, tenancy, condition, sponsor, use of proceeds and the capital sources available for the actual transaction.
How do leases affect a financing review?
Occupancy, tenant concentration, lease expirations and remaining lease terms affect the durability of cash flow. A strong current rent roll still needs review against the property and market.
What is the difference between bridge and permanent financing?
Bridge capital can be considered for a defined transition, such as renovation or lease-up. A permanent path is a separate review of supported operations, value, sponsor and structure; a refinance is not guaranteed.
Is CMBS the right path for every stabilized asset?
No. CMBS is one possible capital channel. Duke compares the asset, tenancy, cash flow, sponsor, execution and structure requirements with other appropriate sources.
Does Duke make the loan or approve the request?
For CRE, Duke acts as a broker and capital advisor. Duke evaluates and structures the scenario and connects clients with appropriate lenders or capital sources. Any financing decision belongs to the selected capital provider and its underwriting process.
Begin a Conversation
Bring us the asset and the request.
Discuss the property, tenancy, operating information, financing need and proposed outcome with Duke by phone or email.