The Henderson office market presents a nuanced investment landscape where property subtype matters more than in any other commercial real estate sector. While general professional office space faces headwinds from remote work trends and elevated vacancy, Henderson's medical office subsector thrives with tight vacancy, premium rents, and strong lender appetite. Understanding these dynamics is essential for investors and owner-occupants seeking financing for Henderson office properties.
Henderson's growing population of approximately 320,000 residents, expanding healthcare infrastructure, and position as Southern Nevada's premier suburban professional center create demand across multiple office subtypes. Whether you are a physician group purchasing a medical office building near Henderson Hospital, an investor acquiring a multi-tenant professional office in Green Valley, or a law firm using SBA financing to buy your own space, Henderson's office lending market provides options tailored to each scenario.
Need Financing for This Project?
Stop searching bank by bank. Get matched with 6,000+ vetted lenders competing for your deal.
What Types of Office Loans Are Available in Henderson?
Henderson office property financing spans the full range of commercial lending programs, though the terms available vary significantly based on whether the property is medical office, general professional office, owner-occupied, or investor-owned.
Conventional commercial mortgages represent the primary financing option for investor-owned Henderson office properties. Rates range from 6.00% to 7.50% as of early 2026, with loan-to-value ratios of 70% to 75% and terms of 5 to 10 years on 25 year amortization schedules. Lenders underwrite these loans based on the property's net operating income, tenant credit quality, weighted average remaining lease term, and the Henderson office submarket's vacancy and absorption trends. Medical office properties with strong tenant rosters consistently receive terms at the more favorable end of these ranges. Visit our permanent loan programs for additional information.
SBA 504 loans are the most advantageous financing option for Henderson professionals purchasing their own office space. The program offers as little as 10% down with a below-market fixed rate on the SBA portion for 20 to 25 years. For a medical practice, law firm, accounting firm, or other professional service business buying a Henderson office building, SBA 504 financing preserves working capital while locking in long-term fixed-rate debt. The requirement is that the borrower must occupy at least 51% of the building's rentable area.
SBA 7(a) loans provide additional flexibility for Henderson office buyers who need to finance both the real estate and business acquisition, equipment purchases, or working capital. Variable rates currently range from 7.50% to 9.00% with terms up to 25 years for real estate.
CMBS and conduit loans offer non-recourse financing for larger Henderson office properties valued at $2 million or more. Rates of 6.25% to 7.75% with 65% to 70% LTV reflect the more conservative underwriting that CMBS lenders apply to office properties in the current market. The lower leverage compared to other property types reflects lender caution around office vacancy risk.
DSCR loans qualify Henderson office investors based on property income rather than personal income documentation. Rates range from 7.50% to 9.50% with up to 70% LTV. DSCR programs are most effective for well-occupied Henderson office properties with established tenant bases. Use our DSCR calculator to evaluate your property.
Bridge loans serve Henderson office properties that need lease-up, renovation, or repositioning before qualifying for permanent financing. Rates range from 9.00% to 11.50% with terms of 12 to 24 months. Bridge financing is particularly relevant for Henderson office properties being converted or repositioned for medical, technology, or creative office users.
Why Is Medical Office the Strongest Subsector in Henderson?
Henderson's medical office market operates almost independently from the general office market, with fundamentally different vacancy rates, rental dynamics, and lender appetite.
Medical office vacancy in Henderson runs approximately 5% to 8%, dramatically lower than general office vacancy of 12% to 16%. This gap exists because medical office demand is driven by population and demographics rather than the corporate real estate decisions and remote work trends that affect general office. Henderson's growing population of approximately 320,000 residents, with a significant concentration of retirees and older adults in established communities like Green Valley and Sun City Anthem, generates sustained demand for primary care, specialist, dental, and outpatient surgical services.
Medical office rents in Henderson average approximately $2.50 to $3.25 per square foot per month on a full service gross basis, representing a 35% to 45% premium over general professional office space. This premium reflects the specialized build-out costs that medical tenants absorb (plumbing, electrical, HVAC, exam room configurations) and the resulting tenant stickiness. Once a medical practice invests $50 to $150 per square foot in build-out, relocating becomes prohibitively expensive, leading to longer lease terms of 5 to 10 years and lower turnover.
Henderson Hospital, St. Rose Dominican hospitals (Siena and Rose de Lima campuses), and the expanding network of urgent care and outpatient surgical centers create anchor demand for medical office space throughout the city. Properties within one to two miles of these hospital campuses command the highest medical office rents and lowest vacancy rates.
For lenders, medical office properties in Henderson represent lower risk than general office due to the tighter vacancy, longer lease terms, tenant investment in build-out, and demographic-driven demand that is insulated from remote work disruption. This translates to more favorable financing terms including higher LTV of up to 75%, lower DSCR minimums of 1.20x to 1.25x, and rates at the lower end of the office lending range.
How Do Henderson Office Lease Dynamics Affect Loan Qualification?
Lenders evaluate Henderson office property loans based heavily on the existing lease structure, because the quality and duration of the income stream determines the property's ability to service debt.
Weighted average remaining lease term (WALT) is a critical underwriting metric for Henderson office properties. This calculation weights each tenant's remaining lease term by the proportion of total rent they represent. A 10-tenant Henderson office building where three tenants representing 60% of rent have seven years remaining and seven tenants representing 40% of rent have two years remaining would have a WALT of approximately 5 years. Lenders prefer WALT of five or more years for conventional financing. Properties with WALT below three years may face reduced LTV, higher rates, or lender requirements for lease renewal reserves.
Tenant credit quality directly impacts loan terms. National and regional tenants with strong financial profiles, such as healthcare systems, insurance companies, and financial institutions, allow Henderson office properties to achieve the most competitive financing. Small, local tenants without audited financials present more risk, and lenders may apply higher vacancy assumptions or lower the maximum loan amount for properties dominated by these tenants.
Lease type matters for Henderson office underwriting. Full service gross leases, where the landlord pays operating expenses and passes them through in the base rent, create higher gross revenue but also higher expense volatility. Triple net leases, where tenants pay property taxes, insurance, and maintenance directly, provide more predictable landlord cash flow. Modified gross leases, which are most common in Henderson office properties, split expenses between landlord and tenant. Lenders model each lease structure differently when calculating net operating income.
Rollover concentration, meaning the percentage of total rent expiring in any single year, represents a key risk factor. If 40% of a Henderson office building's rent expires in the same year, the property faces significant re-leasing risk that lenders must account for. Well-staggered lease expirations with no more than 20% to 25% rolling in any single year present the most financeable profile.
What Are Henderson Office Submarkets and Their Investment Profiles?
Henderson's office inventory of approximately 8.2 million square feet is distributed across several distinct submarkets, each with unique tenant characteristics, rent levels, and investment dynamics.
Green Valley is Henderson's most established professional office market, with a concentration of medical, legal, financial, and insurance tenants. Average rents of $2.25 to $2.65 per square foot and vacancy of 10% to 13% reflect a mature market with stable demand from Henderson's affluent Green Valley residential community. Medical office properties in Green Valley are particularly strong, benefiting from proximity to St. Rose Dominican Siena campus and a dense population of healthcare consumers.
Anthem and South Henderson command the highest office rents in Henderson at $2.35 to $2.75 per square foot with vacancy of 8% to 11%. The master-planned community's affluent demographics attract medical practices, wealth management firms, insurance agencies, and technology companies. Office investment in this submarket carries premium pricing but delivers lower vacancy risk and stronger tenant credit profiles.
Water Street and Downtown Henderson present both opportunity and risk. Average rents of $1.85 to $2.20 per square foot and vacancy of 14% to 18% reflect an office market in transition. The downtown revitalization project, including mixed-use development and public realm improvements, is creating momentum that could improve office demand over time. Bridge financing and value-add strategies are most applicable in this submarket.
Stephanie Street and Sunset Road corridors offer Henderson's deepest value-add office opportunities. Rents of $1.75 to $2.15 per square foot and vacancy of 13% to 17% reflect an older office inventory that can be repositioned for medical, creative, or technology users at significant rent premiums. Renovation-focused investors using bridge loans can target properties along these corridors for conversion to higher-value uses.
West Henderson is an emerging office submarket serving the growing industrial corridor workforce. Rents of $1.95 to $2.30 per square foot and vacancy of 11% to 14% support engineering, industrial services, and technology companies that need proximity to the manufacturing and distribution operations in the corridor.
How Does SBA 504 Financing Work for Henderson Office Purchases?
The SBA 504 program is specifically designed for owner-occupied commercial real estate, making it the ideal financing tool for Henderson medical practices, law firms, accounting firms, and other professional service businesses purchasing their own office space.
The SBA 504 structure combines three financing layers. A conventional first mortgage covers approximately 50% of the total project cost at market rates and terms. An SBA-backed second mortgage through a Certified Development Company covers approximately 40% at a below-market fixed rate for 20 to 25 years. The borrower contributes the remaining 10% as equity.
For a Henderson medical group purchasing a $2.5 million office building, the financing would be structured approximately as follows. The first mortgage of $1.25 million at a conventional rate around 6.50% for a 10 year term. The SBA second mortgage of $1.0 million at a fixed rate around 5.64% for a 25 year term. The borrower's down payment of $250,000.
The primary requirement is that the borrower must occupy at least 51% of the building for existing properties or plan to occupy 60% for new construction. The remaining space can be leased to other tenants, providing additional income that supports debt service. This structure is particularly effective for Henderson medical practices that anchor a building with their own space and lease remaining suites to complementary healthcare providers.
SBA 504 loans preserve working capital by minimizing the down payment, which is critical for professional practices that need to invest in equipment, technology, and staffing. The long-term fixed rate on the SBA portion eliminates interest rate risk for the 20 to 25 year term, providing budgeting certainty that adjustable-rate commercial loans cannot match.
For more details on SBA financing, visit our SBA loan programs page.
What Underwriting Challenges Exist for Henderson General Office Properties?
General professional office properties in Henderson face more conservative underwriting than medical office or other commercial property types, reflecting national trends in the office sector that lenders have incorporated into their risk assessment.
Remote and hybrid work adoption has permanently altered office space demand patterns. While Henderson's professional service economy is less affected than major gateway markets with large technology and finance sectors, lenders now apply higher vacancy assumptions and longer absorption projections when underwriting Henderson general office properties. A pre-pandemic vacancy assumption of 5% to 7% has increased to 10% to 15% for general office underwriting.
Tenant improvement costs for office properties create a capital expenditure burden that affects net operating income projections. Henderson office landlords typically contribute $20 to $50 per square foot for new tenant build-outs and $5 to $15 per square foot for lease renewals. On a 50,000 square foot building, a 20% annual lease rollover with $30 per square foot average TI costs equals $300,000 in annual tenant improvement expense, which must be factored into cash flow projections.
Leasing commissions add another transaction cost layer. Henderson office leasing commissions typically run 4% to 6% of total lease value for new leases and 2% to 3% for renewals. These costs reduce effective net income during lease-up periods and must be reserved for in underwriting projections.
Lenders compensate for these risks by requiring lower LTV of 65% to 70% for general office properties compared to 75% for medical office, higher DSCR minimums of 1.30x to 1.40x, and shorter amortization periods of 20 to 25 years rather than the 25 to 30 years available for other property types.
What Strategies Work for Henderson Office Property Investment?
Despite the headwinds facing general office, several investment strategies produce strong returns in Henderson's office market when executed with discipline and market knowledge.
Medical office acquisition is the most straightforward Henderson office strategy. Identifying properties with medical tenants on long-term leases, or properties in medical-adjacent locations that can be converted to medical use, provides access to the strongest subsector of the Henderson office market. Financing terms for medical office acquisitions are the most favorable available in the office category.
General-to-medical office conversion represents a value-add strategy with significant upside. Purchasing a Henderson general office building with elevated vacancy at a discount, investing in plumbing, HVAC, and electrical upgrades required for medical use, and re-leasing to medical tenants at 35% to 45% higher rents can create substantial value. Bridge financing supports this strategy during the conversion and lease-up period.
Owner-occupant purchase through SBA 504 remains the most capital-efficient strategy for Henderson professionals. By purchasing rather than leasing, the business owner builds equity, locks in occupancy costs, and gains the tax benefits of commercial property ownership, all with just 10% down through the SBA 504 program.
Net lease office investment, targeting Henderson office properties with single creditworthy tenants on long-term absolute net leases, provides passive income with minimal management responsibility. These properties trade at cap rates of 5.5% to 7.0% depending on tenant credit and lease term, and finance efficiently through conventional and CMBS programs.
Use our commercial mortgage calculator to model different Henderson office investment scenarios.
Frequently Asked Questions About Office Loans in Henderson
What is the minimum down payment for a Henderson office property?
The minimum down payment depends on the loan program and occupancy type. SBA 504 loans for owner-occupied Henderson office properties require as little as 10% down. Conventional commercial mortgages for investor-owned office properties typically require 25% to 35% down, depending on the property's tenant quality, vacancy, and the borrower's experience. DSCR loans require 25% to 30% down for Henderson office properties.
Can I finance a Henderson office building with high vacancy?
Yes, but the financing options narrow as vacancy increases. Properties with 80% or higher occupancy qualify for conventional and CMBS financing at competitive terms. Properties with 60% to 80% occupancy may qualify for DSCR or bank portfolio loans with reduced leverage. Properties below 60% occupancy typically require bridge financing or hard money at higher rates and lower LTV. The key is demonstrating a credible plan to achieve stabilized occupancy.
How do lenders evaluate medical office properties differently in Henderson?
Lenders apply more favorable underwriting to Henderson medical office properties because of the subsector's lower vacancy, longer lease terms, higher tenant build-out investment creating stickiness, and demographic-driven demand insulated from remote work trends. Specific advantages include higher LTV of up to 75% vs 70% for general office, lower DSCR minimums of 1.20x to 1.25x vs 1.30x to 1.40x, and more competitive interest rates.
What are typical closing costs for a Henderson office loan?
Closing costs for Henderson office loans range from 2% to 4% of the loan amount. Components include origination fees of 0.5% to 1.5%, commercial appraisal of $4,000 to $8,000, Phase I Environmental Assessment of $2,500 to $4,500, property condition report of $3,000 to $5,000, title insurance, legal fees of $5,000 to $10,000, and Clark County recording fees. SBA 504 loans include additional CDC processing fees.
Is now a good time to buy office space in Henderson?
The answer depends on the property subtype. Medical office in Henderson presents compelling fundamentals with low vacancy and strong demand. General office presents value opportunities for investors willing to accept transitional risk and who have expertise in repositioning or re-leasing. Properties trading at discounts of 15% to 25% from peak values create potential for investors who can stabilize the asset and refinance at improved values.
Can a dental or veterinary practice use SBA financing for Henderson office space?
Yes, dental practices, veterinary clinics, and other healthcare-related businesses qualify for SBA 504 and SBA 7(a) financing to purchase Henderson office or medical office space. The SBA 504 program is particularly effective for these practices because it preserves capital with just 10% down while providing the long-term fixed-rate financing that practice owners need for budgeting certainty.
Contact Clearhouse Lending to discuss office financing options in Henderson and receive a customized rate quote for your medical or professional office property.