Industries Served
Switchgear and Electrical Equipment Financing for Commercial Real Estate and Developers
Tenant commitments have move-in dates. A commercial office tower, mixed-use development, or logistics center that misses its energization milestone because the switchgear is stuck on backorder has a problem that trickles directly into rent commencement and lease economics. Locking in the gear order early with financing in place is how developers hold their delivery commitments to tenants without carrying the full purchase price on the construction equity during a year-long lead time.
We finance electrical distribution equipment for commercial office, retail, industrial, mixed-use, and multifamily properties under development or undergoing major capital upgrades. The scope typically covers service entrance Switchboard Financing, main building switchgear, tenant panelboards, emergency transfer switches, and the distribution transformers that step utility voltage down to building distribution levels. Single buildings and multi-building campus developments both qualify.
CRE Segments This Program Covers
Office and mixed-use towers require substantial electrical distribution infrastructure. The service entrance switchgear, riser distribution, and tenant-floor panels for a 20-story office building represent a significant capital line item. Developers who want to separate that equipment cost from the construction loan draw schedule can use equipment financing to cover the electrical package independently, keeping the construction loan balanced across the hard cost categories.
Industrial and warehouse developers have a different profile. Speculative industrial buildings need enough electrical infrastructure to attract a broad range of tenants, which often means oversizing the service entrance to accommodate manufacturing or cold storage users. Financing the electrical package to a higher specification than minimum build-out cost gives the developer a competitive advantage without tying up additional equity in the construction loan.
Retail and lifestyle center owners doing electrical upgrades to accommodate EV charging infrastructure, LED retrofits, or tenant improvements with high electrical demand face the same dynamics. Existing building owners who want to upgrade service entrance gear without a full construction loan can use an equipment loan on the specific switchgear package. EV charging infrastructure projects frequently require service entrance upgrades that are financed through this program.
How Developers Structure Equipment Financing
Developers most commonly use equipment financing in one of three ways. The first is to cover the electrical package while the construction loan is being assembled, funding the gear deposit so the manufacturer's lead time clock starts before financing close. The second is to finance the full electrical package separately from the construction loan, which keeps the loan-to-cost ratio on the construction facility cleaner. The third is a post-completion equipment loan on the in-service gear, freeing equity for the next project.
For the deposit-and-progress structure, progress and deposit financing funds factory payments before delivery. For complete packages delivered and installed, a standard equipment loan uses the gear as collateral. For post-completion capital recovery, a Sale-Leaseback Financing on installed electrical assets returns capital without refinancing the full building.
Terms And Tax Considerations For CRE
Equipment loan terms run 24 to 84 months. Longer terms are available for large, high-value switchgear packages where the equipment's useful life supports an extended repayment period. Interest expense on equipment loans is deductible, and the equipment can be depreciated. Developers structured as pass-through entities may benefit from Section 179 expensing or bonus depreciation on eligible equipment in the year placed in service. Those benefits persist even when the purchase is financed rather than paid in cash.
Both equipment leasing and direct equipment loans are available. For a clear comparison of how each structure affects ownership, balance sheet treatment, and depreciation, see the lease versus loan overview. REITs and institutional property owners often prefer lease structures for accounting treatment; private developers frequently prefer loans for clean asset ownership.
Active Development Markets
Major development corridors drive the bulk of commercial electrical equipment demand. Markets like Dallas, TX, Atlanta, GA, Charlotte, NC, and Nashville, TN have seen heavy commercial and industrial construction activity, which pushes switchgear lead times in those regions. Developers in those markets who place equipment orders at contract award, rather than at construction start, build a meaningful schedule cushion.
Price This Switchgear Financing Package
Send the quote, seller, lead time, deposit requirement, project location, and the electrical package scope. We will review the structure around the purchase schedule.
Review Switchgear TermsCommon Questions on Switchgear and Electrical Equipment Financing for Commercial Real Estate and Developers
Straight answers before you send the equipment file.
Can I finance the switchgear before the construction loan closes?
Yes. The purchase order and basic company financials are sufficient. Construction loan close is not a prerequisite for equipment financing.
Can the equipment loan be paid off and rolled into permanent financing?
Yes. Equipment loans can be paid off at permanent financing close or structured to be assumed by the permanent lender entity. We work with your team on the payoff.
Can a single-purpose LLC created for one building take out an equipment loan?
Yes. SPE structures are common. We underwrite on the project fundamentals and the principal guarantees behind the entity.
Can we do a sale-leaseback on switchgear in a stabilized building?
Yes. In-service building electrical equipment at a stabilized property is eligible for sale-leaseback financing. Existing liens must be resolved at closing.
Does the building need to be fully leased to qualify for equipment financing?
No. The loan is secured by the equipment, not by occupancy or leasing status. Buildings at any stage of lease-up are eligible.
Review The Switchgear and Electrical Equipment Financing for Commercial Real Estate and Developers Package
Send the equipment quote, seller, lead time, deposit schedule, and project location. The finance desk will review the package against the actual procurement calendar.