Commercial Real Estate Investing Post-Pandemic
U.S. commercial real estate investing is back to pre-pandemic levels, as reported by the Wall Street Journal. Low-interest rates and shifts in Covid-19 restrictions drove investors to triple 2021’s second-quarter commercial real estate investments compared to 2020. In fact, sales volume exceeded 2015 and 2019 averages.
Interestingly, commercial real estate investors changed focus, moving away from mega-metropolises such as New York and San Francisco in favor of hot markets in Sunbelt cities like Atlanta, Houston, Orlando, and Phoenix.
Location isn’t the only market shake-up of the year. Investment property types shifted from crowded office buildings and convention centers to high-demand properties of today, including well-planned apartment buildings and warehouse spaces sought after by the pharmaceutical and biotechnology industries.
New Commercial Real Estate Investing Opportunities
Commercial real estate loan defaults and delayed renovations provide opportunities for investors interested in distressed properties. The Wall Street Journal reports a record surge in the sale of securities backed by riskier commercial real estate loans since the pandemic, indicating market demand for higher-yielding debt driven by anticipated business property recovery.
Commercial real estate collateralized loans (CRE CLOs) are a hot item, with top financial firms already setting full-year sales records at the end of July. CRE CLOs or bridge loans are short-term loans for renovating business properties where lenders sell debt and equity. These types of loans are often associated with multifamily housing units, especially empty or outdated buildings.
Another interesting trend we’ve seen over the last year: the buying up of dilapidated hotel properties by large investors, indicating a repurposing of underused commercial real estate trend on the horizon.
Now may be the time to act if you are considering investing in multifamily, mixed-use, office, owner-occupied, self-storage, raw land, or hospitality properties.
Read our blog Choosing the Right Commercial Real Estate Financing Plan for more information.
Financing Your Next Investment
Opportunity is ripe for investors looking to get into commercial real estate, and we can help you finance your next project. Barrington Commercial Capital has access to a wider variety of loan types than traditional banks and lenders, providing opportunities to fund even the most challenging properties. We can even help with international commercial real estate financing, an industry that is absolutely booming at the moment. Whether you qualify for a conventional program or are a better fit with equity and mezzanine financing, we will help you navigate the process with ease. From $100,000 to $100,000,000 or more, our commercial real estate financing solutions feature:
- Rates as low as 5.5% fixed
- Non-recourse options
- Up to 90% LTV for conventional products
- Up to 100% LTV for some SBA products
- Competitive CMBS loan programs
- No restriction cash-out refinance
- 10-to-40-year fixed terms
- Specialty transitional bridge programs
Just getting started? Read our blog, How to Start Your Commercial Real Estate Business for additional insights.
If you would like to discuss our commercial real estate financing capabilities, please contact us by filling out the form below or give us a call at 404-602-9100. To stay up to speed on all things Barrington Commercial Capital, follow us on Facebook and LinkedIn. And lastly, sign-up for our monthly email below to stay informed of the latest commercial capital options available to you and your business.