The commercial lending industry is changing rapidly. This means new opportunities for online lenders to work directly with companies embarking on ambitious development projects.
So far, 2017 has been a positive year for the commercial real estate industry and, naturally, commercial real estate lending. The successes of the year’s first two quarters is especially remarkable considering the unprecedented growth that occurred in 2016. Despite the fact that commercial real estate experts continue to predict the market is nearing its peak, the industry continues to chug along with moderate yet surprisingly consistent growth.
Every boom peaks out and comes to an end, however. There’s still a chance that the first half of 2017 represented the final gasps of a market headed over the hill. Regardless, taking a closer look at the major developments in commercial lending reveal that the industry is going through major changes. There’s no saying if commercial lending will continue to rise in 2017, but it is clear that the industry is headed in new directions either way.
1. Q2 was a boon for the entire industry: The first half of 2017, especially the second quarter, was a major success. Data collected by the Mortgage Bankers Association reflected a 20% increase in loan origination compared to 2016, according to Scotsman Guide. Increased commercial lending in industrial, office and multifamily sectors were the primary drivers of this surge.
2. Traditional lenders like banks are expanding their horizons: Anticipating an inevitable shift in the market cycle, many traditional lenders have begun to consider a wider range of projects and customers in new industries. According to the Grand Rapids Real Estate Journal, 2017 saw more traditional lenders take on greater numbers of small business, medical, assisted-living, agricultural and hotel clients. Many lenders have also expanded their financial services to include asset and land financing as well.
What does that mean for your business? Even more options for finding the best financing option for your company’s next big project.
3. Experts split on the future of lending growth - Few argue about how rosy the first half of 2017 has been for the commercial real estate industry, but there’s plenty of dissent about how the rest of 2017 is likely to go. According to a report from Bloomberg, banking professionals have reacted to the Federal Reserve’s latest data positively, interpreting signs of accelerated commercial and industrial lending around the corner. Others saw signs of trouble for the rest of 2017, noting that loan demand began to soften by the end of Q2 2017.
Take Advantage Of This Stable Commercial Lending Market Demand Before It’s Too Late
What’s the best way for companies to respond to these takeaways? Act decisively. The industry is always changing, so look to leverage any advantage you see in the status quo before it disappears. Hesitating now could lead you to making a wasted investment down the road.
You can move forward on your next big real estate or development strategy with a quick loan from a trusted online lender
The right loan under the right terms allows your company to create its own golden opportunities. Get in touch with an experienced online lender today to learn more about your company’s option for a commercial mortgage.
Dennis Dahlberg Broker/RI/CEO/MLO
Level 4 Funding LLC Private Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.