Commercial Property Lending: 5 Reasons to Hire a Debt Broker When Seeking Finance (Part 1)

Commercial property lending is rarely won on interest rate alone. The strongest outcomes typically come from lender fit, facility structure, and execution certainty especially when you’re dealing with real-world constraints like valuation risk, servicing tests (DSCR/ICR), presales hurdles, leasing conditions, and time-sensitive settlements.

A specialist debt broker acts as your financing strategist: structuring the request, packaging the credit story, negotiating terms, and managing the process from first principles through to settlement and drawdown.

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Below are five reasons sophisticated property investors, property developers, and business owners engage a debt broker to approach lenders on their behalf.

1) Access to a wider lender universe (banks + non-banks)

In commercial property lending, lender appetite varies materially by:

• asset class (industrial, retail, office, childcare, alt assets)

• location and tenant profile

• lease terms and WALE

• borrower experience and balance sheet strength

• transaction type (acquisition, refi, development, residual stock)

A broker expands your options across major banks, second-tier lenders, and specialist credit funds, helping you avoid the common trap of “forcing” a deal into the wrong lender.

Practical benefit: fewer dead ends, faster lender alignment, and improved terms through competitive options.

2) Structure beats rate: optimising commercial property finance terms that drive cash flow and flexibility

The biggest wins in commercial property lending usually sit inside the facility structure - not just headline pricing.

A debt broker optimises items like:

• LVR / LTC settings (depending on deal type)

• interest-only periods and amortisation profiles

• security structuring and cross-collateralisation decisions

• covenants (DSCR/ICR, LVR triggers, review events)

• release mechanics and substitution flexibility

• drawdown mechanics for capex / fitout / construction

Why it matters: the wrong structure can constrain your ability to refinance, sell down, recycle equity, or execute your next acquisition.

3) Negotiation leverage: better terms across price, covenants and conditions

Commercial property lending is negotiated across multiple dimensions:

• margin and line fees

• valuation assumptions (and valuer selection)

• covenant headroom and testing frequency

• guarantee / recourse expectations

• conditions precedent and documentation complexity

• timing, settlement certainty, and drawdown conditions

A broker creates competitive tension where appropriate and manages lender conversations in credit language, not sales language so the deal is assessed on its strongest merits with the right mitigants highlighted.

4) Higher approval probability through lender-grade credit packaging

Credit teams decline deals for predictable reasons: unclear narrative, missing documents, inconsistent numbers, weak mitigants, or misaligned lender appetite.

A broker improves approval probability by producing a lender-ready pack, typically including:

• clear transaction summary and borrower profile

• serviceability logic (DSCR/ICR sensitivity where relevant)

• lease/tenant analysis, WALE, and market rent context

• development feasibility (LTC, contingency, cost-to-complete)

• exit strategy and refinance/take-out pathway

• supporting documents organised to reduce credit back-and-forth

Result: fewer information requests, fewer delays, and fewer avoidable “credit kills”.

5) Faster execution through process control (valuations, legals, conditions precedent)

In commercial property lending, momentum is everything. Approvals can stall in:

• valuation timing and methodology

• quantity surveyor (QS) processes for construction deals

• legal review and special conditions

• document negotiation and conditions precedent management

A debt broker runs the financing workstream like a project: coordinating stakeholders, sequencing tasks, and keeping the lender moving; critical for tight settlements, auctions, or complex structures.

CapStack perspective: what this means for borrowers

If you’re seeking commercial property lending for an acquisition, refinance, development, or business-backed property facility, the goal is not just to “get approved.” It’s to get approved on terms you can live with, and repeat.

Part 2 is coming next week: we’ll cover five more reasons a debt broker can materially improve outcomes in commercial property lending—especially around risk management, contingency planning, market intelligence, balance sheet strategy, and freeing you to focus on execution.

If you want a strategic, lender-aligned pathway (not just “rate shopping”), speak with CapStack about structuring and executing your next facility.

What is commercial property lending?

Commercial property lending is finance secured by non-residential property (or property used for business purposes), commonly assessed using factors such as tenant quality, lease terms, DSCR/ICR, valuation, and borrower strength.

Do I need a broker for commercial property lending?

Not always - but brokers add the most value when the deal is complex, time-sensitive, or requires tailored structuring, negotiation, and lender alignment.