The commercial real estate sector was among the hardest hit by the recent recession, though many regions have managed to keep lease rates low and occupancy high. When looking to obtain a commercial real estate loan, always consider the location you will be inhabiting, as rates often depend on the locale’s standing in the commercial real estate market.
CNBC recently reported on the top states to do business in, with a specific focus on commercial real estate options. To give an idea of how badly the recession hit the sector, the news provider notes that though office values have increased 11 percent since 2011, they are still 30 percent behind pre-recession figures.
Generally, the regions hit hardest by the recession yield the lowest rent rates for offices and warehouses, such as those in Las Vegas, Nevada, Southern California and Phoenix, Arizona, the source explains. In these locales, owners of commercial real estate are often the most anxious to rent out property, making lease terms more flexible.
Because many of the ripest areas for commercial real estate are not in major hubs, the news provider recommends looking right outside of big cities like New York and San Francisco, as submarkets can provide low rent in active locations.
If you’re looking to obtain a commercial real estate loan, consider using a service like Boefly for your financing needs. This firm allows you to reach thousands of potential lenders and, with its advanced algorithms, sign on with the financier that is best suited to your company’s loan requirements.
On the whole, the sector has steadily improved over the last two years. MortgageOrb recently reported that analysis from a leading commercial real estate organization revealed a drop to 15.7 percent office space vacancy in the second quarter of this year. This marks the lowest such rate since, while the industrial availability has also seen two years of improvement.