Commercial Real Estate Lending Trends

One of the signs of the times that indicates howyear, there is an increase in the overall amount of
any nation's economy is doing can often beactivity in commercial real estate lending. This
determined by how well businesses are expandingshows a growth of about 0.8 percent that is
in real estate. Right now, there is a continuedexpected in the third quarter of 2007, according
expansion of commercial real estate and loans forto the National Association of Realtors. Over the
these new projects. The current commercial reallast few years, commercial real estate lending has
estate lending trends indicate that now is a goodshown a strong increase. The Federal Reserve
time to expand your business with a building(Philadelphia) indicates that large mortgage lenders
program or new land purchase. While the housinghave gone from about 150% of loans (compared
market has certainly taken a real dip, and has hurtto non-commercial) back in the 1990's, to over
the sub prime lenders in particular, commercial300% last year. The number of commercial real
lending goes on. Many new projects, especially inestate loans is increasing and lenders are
the income producing properties realm, is seeingcontinuing to offer excellent interest rates. The
solid expansion. This includes the construction ofmarket has begun to show a slight decrease in
office parks and buildings, multi-family dwellings,recent days, but for right now, the rates needed
hotels, and other general land developmentto expand business could not be much better.
programs. One particular market that has held upThe qualifications needed to get such a loan also
its own is office rentals. The demand for officecould not be much softer than they are right
space - even at increased rent values - hasnow, too. Seeing this kind of commercial real
grown. This is especially true in New York Cityestate trend, and the market's favor for this kind
(Manhattan), and some other large cities, too. Thisof loan, you also may be able to benefit greatly
means that the available office rental space hasby investing now in a new building project or land
actually decreased as office space is being filled -development program. Check on availability of
much to the owner's delight. In New York City,office space (in particular) in the area, find out
office space is being grabbed up - even thoughhow fast it is being secured by new businesses,
the rent has risen to nearly $70 per square foot.and if it is in demand, be ready to move on the
A few other cities, however, still show a slowopportunity. Scope out possible land available, or
office rent market. In fact, much office spaceexisting structures that can easily be renovated
remains unoccupied. In those cities, though, whereinto office space, get your paperwork in order,
office space is in demand, the number of officeand talk to a commercial lender about your goals
buildings and office parks are certainly on the rise,before someone beats you to it. Now is the best
as developers rush to fill in the gap. Commercialtime for action on this kind of opportunity, while
lenders are also seeing the need and providing thecommercial loans are still available at great terms.
necessary bridge loans and commercial loans forPlease visit SNC Commercial Loans. You can also
these massive projects. When compared to lastfind more information on direct lending.