Property Cash Flow, Debt Service Coverage, and Appraisal
Western Alliance Bank CRE underwriting starts with net operating income (NOI) analysis. Income statements are normalized for vacancy, collection loss, and market-standard expenses. Debt service coverage ratios (DSCR) typically require 1.20x to 1.30x on stabilized properties and 1.25x to 1.40x on construction stabilization. Commercial appraisals performed by state-certified appraisers set loan-to-value limits. Environmental Phase I reports document site conditions. Property condition reports identify deferred maintenance items on existing buildings. For multifamily assets, rent roll analysis validates scheduled income against market rents.
Owner-occupied CRE underwriting adds business cash flow analysis — the operating business must demonstrate independent debt service capacity. Business loan covenants pair with the CRE mortgage in most owner-occupied structures. Borrowers with existing treasury relationships receive faster approval because the bank already has operational visibility.
Commercial Lending


