| One of the signs of the times that indicates | | | | overall amount of activity in commercial real |
| how any nation's economy is doing can often | | | | estate lending. This shows a growth of about |
| be determined by how well businesses are | | | | 0.8 percent that is expected in the third |
| expanding in real estate. Right now, there is | | | | quarter of 2007, according to the National |
| a continued expansion of commercial real | | | | Association of Realtors. Over the last few |
| estate and loans for these new projects. The | | | | years, commercial real estate lending has |
| current commercial real estate lending trends | | | | shown a strong increase. The Federal Reserve |
| indicate that now is a good time to expand | | | | (Philadelphia) indicates that large mortgage |
| your business with a building program or new | | | | lenders have gone from about 150% of loans |
| land purchase. While the housing market has | | | | (compared to non-commercial) back in the |
| certainly taken a real dip, and has hurt the | | | | 1990's, to over 300% last year. The number |
| sub prime lenders in particular, commercial | | | | of commercial real estate loans is increasing |
| lending goes on. Many new projects, | | | | and lenders are continuing to offer excellent |
| especially in the income producing properties | | | | interest rates. The market has begun to show |
| realm, is seeing solid expansion. This | | | | a slight decrease in recent days, but for |
| includes the construction of office parks and | | | | right now, the rates needed to expand |
| buildings, multi-family dwellings, hotels, | | | | business could not be much better. The |
| and other general land development programs. | | | | qualifications needed to get such a loan also |
| One particular market that has held up its | | | | could not be much softer than they are right |
| own is office rentals. The demand for office | | | | now, too. Seeing this kind of commercial |
| space - even at increased rent values - has | | | | real estate trend, and the market's favor for |
| grown. This is especially true in New York | | | | this kind of loan, you also may be able to |
| City (Manhattan), and some other large | | | | benefit greatly by investing now in a new |
| cities, too. This means that the available | | | | building project or land development program. |
| office rental space has actually decreased as | | | | Check on availability of office space (in |
| office space is being filled - much to the | | | | particular) in the area, find out how fast it |
| owner's delight. In New York City, office | | | | is being secured by new businesses, and if it |
| space is being grabbed up - even though the | | | | is in demand, be ready to move on the |
| rent has risen to nearly $70 per square foot. | | | | opportunity. Scope out possible land |
| A few other cities, however, still show a | | | | available, or existing structures that can |
| slow office rent market. In fact, much office | | | | easily be renovated into office space, get |
| space remains unoccupied. In those cities, | | | | your paperwork in order, and talk to a |
| though, where office space is in demand, the | | | | commercial lender about your goals before |
| number of office buildings and office parks | | | | someone beats you to it. Now is the best time |
| are certainly on the rise, as developers rush | | | | for action on this kind of opportunity, while |
| to fill in the gap. Commercial lenders are | | | | commercial loans are still available at great |
| also seeing the need and providing the | | | | terms. |
| necessary bridge loans and commercial loans | | | | |
| for these massive projects. When compared to | | | | Please visit SNC Commercial Loans. You can |
| last year, there is an increase in the | | | | also find more information on direct lending. |