Small business commercial real estate lending has been a large point of contention in recent months, as national and international reports consistently contradict one another. However, local areas and certain types of commercial real estate have either bounced back in recent months, or remained steady in the years following the Great Recession.
Small business owners who are interested in purchasing commercial real estate will find the current climate extremely advantageous, as the recession dropped rates to record lows, and vacancies abound. After finding adequate commercial real estate loans, entrepreneurs have a lot of options for commercial space.
Turbulence in Colorado
The Gazette recently reported that the commercial real estate fallout after the recession in Colorado Springs has persisted throughout this year, as vacancies have increased in the Colorado city. According to the news provider, a recent Turner Commercial Research report found that vacancy rates in the city increased from 12.1 percent in the second quarter of this year to 12.2 percent in the third.
While the report did suggest that conditions might begin to see marked improvement in December and potentially the first months of 2013, the outlook at present is dire. Office space and shopping center vacancies both increased last quarter, rising 0.1 and 0.5 percent, respectively. The industrial real estate market did improve slightly, though, dropping from 9.8 percent in the second quarter to 9.6 percent in the third.
Though similar issues have plagued many areas, others, including parts of Florida, California and Rhode Island, have seen improvements. Overall, many researchers believe that significant improvements will not be seen on a national level until the final months of this year and the beginning of 2013. This does bode well for small business owners, as rates will likely remain low throughout the next several quarters.
One sector appears recession-proof
The World Property Channel recently reported that the medical real estate market has been surprisingly strong, especially compared to other commercial sectors, throughout the past several years. According to the news provider, medical property development, including new constructions and occupancy rates of existing locations, have been almost impervious to the recession.
The source explained that though budgets remain tight at the nation’s medical providers, all of the relocating and reassessing of their physical properties have helped the medical real estate market remain intact. The World Property Channel added that ambulatory care facilities, along with those for urgent care, have seen improvements in occupancy rates, likely because of lower operational costs than full hospitals.
Getting the loans you need
Small business owners who want to capitalize on the historic low rates of commercial real estate can improve their chances of approval with BoeFly. This firm has thousands of participating lenders, and expedites the loan application process. Through complex algorithms, BoeFly matches borrowers with the lenders best-suited to their specific business needs, improving the overall outcome of the application and acquisition processes.