Marc Callaghan, Head of Commercial Mortgages, OSB Group
When I moved into commercial lending more than a decade ago, commercial property was often viewed as a relatively niche area of the market. Investors were more likely to focus on a single sector and build their portfolios within it. Today, portfolios are far more varied, combining different property types, ownership structures and income streams.
Commercial and semi commercial assets are playing a larger role in portfolio strategies as investors seek new opportunities and greater resilience. Brokers working with landlords, business owners and investors are seeing a wider range of funding requirements emerge as a result.
Many already work with clients whose ambitions extend beyond their current borrowing arrangements. The opportunity lies in recognising when a client’s circumstances have evolved and identifying where commercial finance can support their next move.
We’ve seen many investors who traditionally focused on buy to let expand into commercial and mixed-use assets, while others are building holdings across multiple sectors rather than concentrating on one area of the market. The appetite to invest remains strong, but clients often expect brokers to discuss a wider range of funding options than they may have done in the past.
Commercial and semi commercial property covers a wide range of assets, from offices, retail units and industrial premises to mixed-use properties that combine commercial and residential elements. Understanding where these assets fit within a client’s long-term objectives can help brokers identify opportunities that may otherwise be overlooked.
Existing clients that run their own businesses can also present opportunities that may not have been explored previously. Many are weighing the benefits of purchasing their premises rather than continuing to lease, whether to gain greater control over costs or support longer-term business plans. These conversations can often lead brokers into areas of finance that sit outside their traditional lending activity.
While commercial lending differs from residential finance, the fundamentals remain familiar. Success still depends on understanding the client’s objectives, experience and future plans, whether funding an owner occupier purchase or supporting an investment strategy.
As portfolios grow, borrowers are often operating across multiple asset classes and using more sophisticated ownership structures. That can create additional considerations around funding, security and affordability, making specialist guidance increasingly valuable.
This is where brokers play a particularly important role, because commercial transactions are rarely about matching a client to a product. Navigating ownership arrangements, varied property types and differing lending requirements often calls for a more tailored approach and a strong understanding of the available options.
The way the market operates has evolved considerably. Technology has improved efficiency, increased transparency and helped deliver faster outcomes across the industry. Borrowers now expect quicker decisions, clearer communication and a smoother experience from application through to completion.
Yet commercial property transactions are rarely identical. Every case brings its own circumstances and lending considerations, and successful outcomes still depend on applying experience and judgement to find the most appropriate solution.
At its core, commercial lending remains a relationship-driven business. Processes may be more streamlined than they once were, but trust, communication and a genuine understanding of a client’s circumstances continue to underpin successful outcomes, particularly when they are entering unfamiliar areas of the market.
For many brokers, the opportunity in commercial finance is not about moving into an entirely new market. It is about recognising changing client needs and being able to support them more fully as their property interests evolve. A landlord considering a mixed-use investment, a business owner looking to purchase premises, or an investor broadening their portfolio may already be looking for guidance.
By developing their knowledge of commercial and semi commercial lending, brokers can support a wider range of funding requirements and ensure they remain central to their clients’ property and business ambitions as those requirements become more complex.