Commercial Real Estate Lending: Tips for Today’s Market
The COVID-19 pandemic has significantly affected nearly every aspect of our daily life. Automation and online servicing have changed the way we do business – probably forever. They’ve also changed the commercial real estate market. In Baltimore, Homewood Federal Savings Bank, is your trusted commercial real estate lender. Here are a few trends to help you make good commercial real estate investments while interest rates remain low.
Online shopping
Online shopping is no longer just for the big guys like Amazon, eBay, and Etsy. Many smaller, even local, retailers shifted to e-commerce during the pandemic. So, while many retail spaces were shuttered, the need for warehouse space increased significantly. Small business adapted to online quickly and offered great personal service to local customers. Investments in warehouse and logistics spaces are currently excellent ventures for those interested in commercial real estate investments.
Repurposing commercial properties
Repurposing commercial properties is a trend JPMorgan believes will have a positive impact on the commercial real estate market. Those abandoned shopping malls can be converted to high-demand, profitable warehouse and distribution space. Hotels can be re-imagined as affordable housing options, or as quiet office spaces for remote workers.
Single-family and multi-family rental homes
Single-family and multi-family rental homes have become a popular attraction since the beginning of the pandemic. As remote work became the norm, people fled the cities for rental units in smaller communities and vacation areas. Rents on these properties have remained stable and relatively high making rental homes a good commercial real estate investment.
Commercial real estate, like many other investment and business sectors, has changed dramatically and quickly during the last year-and-a-half, but most of the changes were already on the horizon. The pandemic simply accelerated the pace.
Homewood Federal Savings Bank wants to be your trusted partner in Baltimore as you begin, or continue, your commercial real estate investment portfolio. Our experienced bankers build long-term relationships by manually-underwriting all of our loans. We get to know you and your unique situation, then make lending decisions that make sense for you – not for a computer algorithm. We will never sell your loan. We mean it when we say that we are your trusted business partner. We’ll be with you from your loan origination through the final payment.
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