Experts: Commercial mortgage activity to remain competitive

Jessica SarterCommercial Lending

Commercial lending activity is expected to remain competitive in coming months, despite a slew of recent uncertainty regarding the overall U.S. credit market. While the residential housing market has been the main source of trouble for the real estate sector, commercial trends have been anything but robust.

However, analysts maintain that commercial rates will remain low and may even become slightly more competitive. Analysts at Clopton Capital report there are currently no indicators or market trends that suggest commercial lending and mortgage activity will deteriorate this year.

"Commercial mortgages rates are now as low as 3.5 percent under ideal conditions," said Jake Clopton, the founder of Clopton Capital. "This is unprecedented and something I would not have expected two years ago, but it's here and all things considered I do not see commercial mortgage rates going anywhere anytime soon."

Commercial lenders are expected to partner with other banks who do not have the capabilities to underwrite commercial financing services, Clopton said in a statement. They also plan to expand their web presence and brand recognition through traditional methods.

Creditors are also advised to vet potential borrowers through online lending marketplaces like Boefly. These resources can help entrepreneurs peruse a wide array of alternative lenders, mortgage-backers, banks and investors.

"It's a shame that there are so many people out there looking for commercial mortgages and can not find what they need through their local banks so they simply stop looking," said Matt Reed, an associate at Clopton Capital. This is just one of the many reasons why small business owners have broadened their credit options and outlooks in the post-recession economy.