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Commercial Property Loans in Surprise
- Commercial Property Loans in Surprise, Arizona
- Economy in Review
- Multifamily Market
- Office Market
- Industrial Market
- Retail Market
- Self-Storage Market
- Hospitality Market
- Commercial Real Estate Loans by Purpose
- Permanent Financing
- Refinancing a Commercial Real Estate Property in Surprise
- Construction Financing
- Bridge Loans
- Commercial Real Estate Loans by Type
- Bank Loans
- Life Company Loans
- Agency Loans
- HUD Loans
- CMBS Loans
- SBA Loans
- Mezzanine Loans
- Commercial Property Insurance in Surprise
- Get Financing
Commercial Property Loans in Surprise, Arizona
Economy in Review
Surprise, Arizona has experienced steady economic growth in recent years. The city's unemployment rate has remained consistently below the national average, and job growth has outpaced the rest of the state. The Bureau of Labor Statistics reports that the largest industries in Surprise are healthcare and social assistance, retail trade, and education services. The city's population has also been steadily increasing, with a growth rate higher than the national average.Multifamily Market
The multifamily market in Surprise has been strong in recent years. The U.S. Census Bureau reports that the city's population has grown by over 20% since 2010, leading to increased demand for rental properties. The vacancy rate for multifamily properties in Surprise is below the national average, and rental rates have been steadily increasing.Office Market
The office market in Surprise has also been growing steadily. The city has seen an increase in the number of businesses and office buildings in recent years, with a particular focus on healthcare and technology industries. The vacancy rate for office space in Surprise is below the national average, and rental rates have been increasing.Industrial Market
The industrial market in Surprise has been growing rapidly in recent years. The city's location near major highways and transportation hubs has made it an attractive location for distribution centers and manufacturing facilities. The vacancy rate for industrial properties in Surprise is below the national average, and rental rates have been increasing.Retail Market
The retail market in Surprise has also been growing steadily. The city has seen an increase in the number of retail businesses and shopping centers in recent years, with a particular focus on entertainment and dining options. The vacancy rate for retail properties in Surprise is below the national average, and rental rates have been increasing.Self-Storage Market
The self-storage market in Surprise has been growing steadily in recent years. The city's population growth has led to increased demand for storage space, and the vacancy rate for self-storage properties in Surprise is below the national average. Rental rates for self-storage units have been increasing.Hospitality Market
The hospitality market in Surprise has been growing rapidly in recent years. The city has seen an increase in the number of hotels and resorts, particularly in the sports and entertainment industries. The vacancy rate for hotel properties in Surprise is below the national average, and rental rates have been increasing. In conclusion, the commercial property market in Surprise, Arizona has been growing steadily in recent years, with strong demand and increasing rental rates across all sectors. As a result, commercial property loans in Surprise are a promising investment opportunity for those looking to enter the market.Commercial Real Estate Loans by Purpose
There are many types of loans available for commercial properties in Surprise, and the best fit for you depends on your investment strategy. Here are some broad categories of financing available.
Permanent Financing
Permanent financing is a type of loan that remains in place for an extended period of time. It's commonly used to finance the acquisition of commercial properties or to refinance existing debt. Types of permanent financing include bank loans, loans from government-sponsored entities like Fannie Mae and Freddie Mac, HUD loans, credit union loans, loans from life insurance companies, commercial mortgage backed securities (CMBS) loans, and other types of loans depending on the specifics of the commercial property.
Refinancing a Commercial Real Estate Property in Surprise
I wouldn't quite call this a separate type of loan, but I have to mention refinancing in here. These are typically permanent loans (but not always) used to pay down an existing, partially amortizing or interest-only loan.
Often you may be able to time a refinance to happen after an interest rate drop — an ideal solution — but if your loan is maturing during a period of higher rates, you shouldn't stress too much about this. We'll work with you to find the best loan terms for your commercial property by reaching out to potentially thousands of lenders. Just complete the form below, and we'll get to it.
Construction Financing
Construction financing, also known as interim financing, is used to finance the cost of construction for commercial properties. It is usually a short-term loan that covers the cost of land development and building construction. Once construction is completed, the borrower can typically convert this into a permanent loan or pay it off with a new loan.
Bridge Loans
Bridge loans are a type of short-term loan that can be used to cover costs in the interim period between the end of one loan and the beginning of another. They are typically used in commercial real estate to finance the transition between construction financing and permanent financing. Bridge loans generally have higher costs than most other financing options and are often interest-only and non-recourse.
Commercial Real Estate Loans by Type
Depending on the purpose of your loan, you will have several financing options available to meet your investment goals. Read below to learn more about specific loan types.
Bank Loans
Bank loans are a common financing option for commercial real estate in Surprise. They can offer competitive interest rates and flexible terms, but the specifics can vary greatly from bank to bank. While they may not always be the best fit for larger, more complex projects, they can be an excellent option for smaller, simpler properties.
Life Company Loans
Life company loans are typically used to finance high-quality assets in major markets. They generally have lower loan-to-value ratios than most other loan types but offer competitive interest rates and long terms. However, they may not be suitable for riskier projects or properties in less established markets.
Agency Loans
Agency loans, offered by government-sponsored entities like Fannie Mae and Freddie Mac, are typically used for properties that are mostly multifamily. They offer attractive loan terms, low, fixed interest rates, and are non-recourse. However, there are restrictions on the amount of income that can come from other commercial uses.
HUD Loans
HUD multifamily loans are government-backed loans that are primarily used for the construction, substantial rehabilitation, purchase, and refinancing of multifamily properties. These loans offer long-term, non-recourse financing with competitive interest rates but have extensive requirements for qualification.
CMBS Loans
Commercial Mortgage Backed Securities (CMBS) loans are a type of mortgage-backed security backed by commercial real estate loans. Lenders focus more on the strength of the property than the borrower's credit, making them a good option for properties with strong cash flow.
SBA Loans
Small Business Administration (SBA) loans, such as the SBA 7(a) and SBA 504, offer attractive financing options for small businesses. However, the maximum amount for an SBA 7(a) loan is $5 million, while SBA 504 loans can go up to $20 million. They cannot be used for multifamily properties and are only available for properties that the business owner occupies.
Mezzanine Loans
Mezzanine financing is a hybrid form of financing that combines elements of debt financing and equity investment. It is typically used in commercial real estate to fill a funding gap between the primary loan and the total cost of a project.
Commercial Property Insurance in Surprise
This part isn't about loans, but it's just as important to your investment's success. Let's talk (quickly) about insurance.
Insurance premiums have skyrocketed in the past few years, as I'm sure you know. While multifamily gets a lot of the attention, rates for insuring anything from office buildings to shopping centers have jumped significantly.
Janover Insurance Group is dedicated to finding the best insurance solutions for your commercial real estate assets in Surprise. Click to get a free insurance quote for your property — no obligation.
- Commercial Property Loans in Surprise, Arizona
- Economy in Review
- Multifamily Market
- Office Market
- Industrial Market
- Retail Market
- Self-Storage Market
- Hospitality Market
- Commercial Real Estate Loans by Purpose
- Permanent Financing
- Refinancing a Commercial Real Estate Property in Surprise
- Construction Financing
- Bridge Loans
- Commercial Real Estate Loans by Type
- Bank Loans
- Life Company Loans
- Agency Loans
- HUD Loans
- CMBS Loans
- SBA Loans
- Mezzanine Loans
- Commercial Property Insurance in Surprise
- Get Financing