Do Lenders work with properties without 100% occupancy?

[Khaled Seirafi]

Hi there,

My family owns a multi-use commercial property in San Mateo, CA and one of the commercial spaces is vacant. The rest of the property is fully occupied. Would commercial lenders be willing to work with us to do a cash refi in order to purchase another property or do we have to wait until that vacant space is rented out? 

[Ken Naim]

@Khaled Seirafi it depends on the occupancy level. 1 vacant out of 25 (96%) almost all will, 1 out of 5, significantly fewer. It'll also depend of how much the property appraisers for and how much ltv you are looking for. With a vacancy your noi will be lower, so your appraisal will be lower, so less cash out even with the same ltv.