Shawbrook said that in the past 12 months, investor appetite for commercial property has “remained resilient” and “well-located office assets in particular showing signs of capital value and yield stabilisation”.
Recent research from Rightmove has shown that demand to lease office space is 19% higher than the same period a year ago. It added that demand for investment into office space is 75% up on last year.
The lender said it “continues to [e]volve its lending criteria in line with emerging opportunities for professional landlords”.
The firm said it had made similar maximum LTV increases to its industrial and retail sectors in 2024.
Daryl Norkett, director of real estate proposition at Shawbrook, said: “Increasing our maximum LTVs for the office sector to 75% is another way that we’re evolving our proposition in response to ever-changing market dynamics. Throughout 2024, we saw growing investor confidence in commercial property – particularly in offices that are well-positioned and future-fit.
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“This move not only reflects the increased stability we’re seeing in the office sector, but also underlines our ongoing support for professional investors seeking to diversify and grow with the market opportunities.”
