We track market signals to help California office owners time their refinance. Rather than chase quotes during volatility, set alerts and monitor the path of rates, spreads, and lender appetite.
Intent
This page focuses on refinance decisioning for stabilized office assets in California. It covers rates, DSCR math, lender comparisons, and localized underwriting context.
Below you’ll find a concise, skimmable guide with up‑to‑date rate context, example DSCR calculations, lender trade‑offs, and local underwriting norms. Use the sticky table of contents to jump between sections.
Base rate snapshot
6.29%
Trend: Rising
Volatility score: 100
Last change: 200 bps
Updated: 8/18/2025, 12:00:00 AM
Property-type adjustment
Office spread baked into examples
Volatility: high
Planning guidance
- 6–18 months: align financials, monitor DSCR and spreads
- 3–6 months: negotiate covenants, compare offers
- Near/post maturity: mitigate extension and default risk
30‑day rate trend
Source: FRED (10Y Treasury) / commercial mortgage estimate
DSCR examples (illustrative)
DSCR is NOI divided by annual debt service. Use the scenario below as a starting point and swap in your actual NOI to understand proceeds sensitivity.
Sample DSCR scenario (example only)
| Metric | Value |
|---|---|
| Loan Amount | $5,000,000 |
| Rate Used | 8.54% |
| Term | 300 months |
| Monthly Payment | $40,396 |
| Annual NOI (assumed) | $650,000 |
| DSCR (example) | 1.34 |
Numbers are illustrative. Use your actual NOI and debt terms.
Local underwriting context
Local underwriting context — California
- Tighter leverage on office than other property types; DSCR floors common.
- Transaction costs vary by county; transfer taxes can apply on ownership changes.
- ESG/capex plans increasingly reviewed for multi-tenant assets.
Sources:
Lender comparison
Different lender types price risk differently. Use this high‑level comparison to frame outreach and negotiations.
Lender comparison
| Lender | Pros | Cons |
|---|---|---|
| Banks |
|
|
| Debt funds |
|
|
| Life companies |
|
|
Timing windows
- 6–18 months: position NOI, watch spreads vs. Treasuries
- 3–6 months: rate locks, diligence, legal review
- Post-maturity: avoid default remedies and punitive rates
Tip
Alerts help you act on dislocations rather than averages.
Frequently asked questions
FAQs
How do office refinance rates in California compare to national averages?
California often tracks national benchmarks but can diverge due to liquidity and coastal market risk. Monitor spread behavior and lender appetite for office specifically.
What DSCR do lenders typically underwrite for California office?
Many lenders underwrite 1.25–1.35× DSCR for stabilized office. Lower DSCR may tighten proceeds or require structure.
When should I start the refinance process?
Begin 6–18 months ahead. Secure term sheets 3–6 months out. Near maturity, act quickly to avoid extension fees or default risk.
Are prepayment penalties common on office loans?
Yes. Yields maintenance or defeasance can apply. Review your note and weigh penalties against savings from lower rates.
Which lenders are active in California office today?
Activity shifts. Banks, agencies (where eligible), debt funds, and life companies offer varying proceeds and covenants.
Will my property tax reassess on refinance in California?
Generally, refinance alone does not trigger reassessment, but ownership changes can. See the California State Board of Equalization.
How volatile are refinance rates right now?
Volatility changes with macro data. Use RefiRadar to monitor daily moves and alert you when opportunities emerge.
Glossary
Glossary
- DSCRDebt Service Coverage Ratio: NOI divided by annual debt service.
- LTVLoan-to-Value ratio: loan amount divided by appraised value.
- SOFRSecured Overnight Financing Rate, a common floating-rate benchmark.
- PrepaymentPenalty or cost for paying off a loan prior to maturity.