OOCRE (Owner Occupied Commercial Real Estate) is typically a commercial property of one of the following types:

  • Office (Office Buildings and/or Office Condos)
  • Industrial (Including warehouses and manufacturing facilities)
  • Retail
  • Shopping Center
  • Agricultural
  • Hotel & Motel
  • Senior Housing / Assisted Living Facilities
  • Health Care
  • Special Purpose

Unimproved land, Multifamily Homes, and Residential Income Homes are not recognized by most banks or lending institutions as OOCRE.

OOCRE is a description utilized to describe the use or utility that the owner will have with the property. Typically an operating entity (Corporations, Partnerships, LLC, etc...) will own the property with the purpose of running business operations out of it or interacting with customers in there.


OOCRE is the most desirable type of lending by banks for commercial real estate. It is probably one of the few visible advertising seen by banks for commercial real estate lending. OOCRE is the sister or "Primary Residential Real Estate" which has a lower probability of default on lending since must loans require a personal guarantee as well as a guarantee from the borrowing entity which is typically an operating company. Typical Bank loan terms on a OOCRE:

  • Amortization Period are typically 15, 20 or 25 years.
  • Term period 5 to 25 years, if it does not match the amortization period, it is considered a balloon payment mortgage
  • Rates: must banks prefer to lend at variable rates (typically tied to Prime Rate or LIBOR) Some banks offer fixed rates for term period.
  • Prepayment penalties are very common, typically 1% to 5% of the unpaid principal if the loan is paid in full or partially by more than the scheduled payment by the amortization table. most prepayment penalties are for 5 years but some extend through the entire term.



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