“It’s still not a slam-dunk decision to do an office space,” he said. “You definitely have to do a little bit more underwriting for the lease, and then who they’re leasing to. Office space is an interesting space for banks to look at and underwrite. We typically (look at) medical office, and we classify that a little bit differently.
“Most of the time when we’re looking at office space now, we’re pretty leery of how long the lease terms are and what the sublease options are.”
Despite market turmoil, commercial real estate originations jumped in Q1 2025. Danny Llorente, Chief Lending Officer at KDM Financial, attributes this to investors re-entering the market and many loans soon coming due.https://t.co/4jur50WJXK
— Mortgage Professional America Magazine (@MPAMagazineUS) May 27, 2025
Druey said one thing helping the office market is the return-to-office mandates from some corporations. He said that companies, including Centennial Bank, are looking for flexible office space.
“There’s a migration back to people coming back to the office, maybe not five days a week, but maybe two or three,” he said. “I think that you’re seeing more flex office space. We are looking to downsize in our office space, and we’re pretty pleased with some of the offers we’ve been getting to move because we’re a credit tenant. They want to make sure that if they have us in there, they can get a better rate or longer term.”
Businesses looking to relocate
One reason Florida became a destination location for many corporations during the pandemic was the more relaxed regulations it imposed. While other states remained restricted, Florida remained largely business as usual.
