Can you get a commercial mortgage on an office, warehouse, or industrial unit?
Yes. Offices, warehouses, and industrial units are among the most common assets funded by commercial mortgages in the UK. Whether you are a business buying premises to trade from or an investor buying to let, lenders will consider these property types. What differs is how each asset is assessed, because location, demand, tenant profile, and building specification vary significantly between them.
Commercial mortgages for offices
Office premises range from single small suites to large multi-let buildings. Lenders assessing an office deal focus on:
- Location and transport links, which drive tenant demand
- The quality and flexibility of the space
- Lease length and tenant strength for investment deals
- For owner-occupied deals, the affordability of the occupying business
Office demand can vary by location and building quality, so a strong tenant on a long lease or a profitable occupying business is key to a good outcome. As with any investment deal, the debt service coverage ratio is central.
Commercial mortgages for warehouses
Warehouses and logistics units have seen sustained demand, driven by distribution and e-commerce. Lenders generally view well-located, modern warehouse space favourably. Key considerations include:
- Access, yard space, eaves height, and loading facilities
- Proximity to major roads and distribution networks
- The covenant of the occupying business or tenant
- Flexibility of the unit for alternative occupiers
Commercial mortgages for industrial units
Industrial units cover light industrial estates, workshops, manufacturing space, and trade counters. These are often owner-occupied by trading businesses. Lenders look at:
- The specific use and any specialist fit-out
- Whether the unit is standard and re-lettable or highly bespoke
- Environmental factors, particularly for manufacturing uses
- The trading history and affordability of an owner-occupier business
Standard, flexible units on established estates are more attractive to lenders than heavily specialised buildings, because they are easier to re-let or sell if needed.
What LTV and rates to expect
For standard, well-located offices, warehouses, and industrial units, expect up to around 70 to 75 percent LTV on owner-occupied deals and around 65 to 75 percent on investment deals. Niche, remote, or highly specialised assets may see lower LTVs. Rates broadly follow the wider market, commonly in the region of 6 to 9 percent, as set out in our rates and fees guide. The deposit and LTV mechanics are covered in our deposit guide.
Owner-occupied or investment?
If your business will occupy the unit, you need an owner-occupied mortgage assessed on business affordability. If you are letting it to tenants, you need an investment mortgage assessed on rent, as covered in our guide to commercial investment property finance. Many investors build portfolios of industrial and warehouse units precisely because demand and yields can be attractive.
Getting funded with Assesr
Because lender appetite varies so much by asset type and location, matching your deal to the right lenders is critical. Assesr builds a lender-ready credit paper in around 60 seconds and matches your office, warehouse, or industrial commercial mortgage to specialist lenders whose criteria fit, at a quarter of the typical broker fee.
Frequently asked questions
Can I get a mortgage on an industrial unit or warehouse?
Yes. Industrial units and warehouses are common commercial mortgage assets, whether owner-occupied by a trading business or held as investments let to tenants. Lenders assess location, use, condition, and demand.
Are office mortgages harder to get than industrial ones?
It depends on the market. Demand for industrial and warehouse space has been strong, which can make lenders comfortable, while office demand varies by location and quality. The tenant and lease matter more than the label.
What LTV can I get on a warehouse or office?
Standard, well-located units typically attract up to around 70 to 75 percent LTV for owner-occupied and 65 to 75 percent for investment, though niche or poorly located assets may see lower figures.