Full-wave time-domain electromagnetic methods are usually effective in rigorously modeling and evaluating ultrawideband (UWB) wireless channels. However, their computational expenditures are expensive, when they are used to deal with electrically large-size problems consisting of fine structures. In order to reduce computational time, the unconditionally stable leapfrog alternating-direction implicit finite-difference time-domain (leapfrog ADI-FDTD) method has been proposed recently. In this paper, the leapfrog ADI-FDTD algorithm is developed for simulating lossy objects, such as office walls, floors, and ceilings, for UWB communication channel characterization. It leads to effective UWB channel characterization with power-decay time constant, path loss exponent, and probability distribution of power gain. In comparison with the conventional FDTD, the proposed method can achieve 60% saving in computational time while retaining good accuracy.