Economy in Review

El Cajon, California is a city with a diverse economy that has been steadily growing over the past few years. The city's unemployment rate has been consistently lower than the national average, and the job market has been expanding in various sectors. The healthcare and social assistance sector is the largest employer in the city, followed by retail trade and manufacturing. The median household income in El Cajon is higher than the state average, indicating a strong local economy.

The city's economy is also supported by its proximity to San Diego, which is home to several major employers in industries such as biotechnology, defense, and tourism. This has created a spill-over effect that has benefited El Cajon's economy as well.

Multifamily Market

The multifamily market in El Cajon has been experiencing steady growth over the past few years. The demand for rental properties has been increasing due to the city's growing population and job market. The vacancy rate for multifamily properties in El Cajon is lower than the national average, indicating a strong demand for rental properties.

Office Market

The office market in El Cajon has been stable over the past few years. The city's proximity to San Diego has made it an attractive location for businesses looking to expand or relocate. The vacancy rate for office properties in El Cajon is slightly higher than the national average, but this is due to new construction projects that are currently underway.

Industrial Market

The industrial market in El Cajon has been growing steadily over the past few years. The city's location near major highways and ports has made it an attractive location for businesses in industries such as manufacturing and logistics. The vacancy rate for industrial properties in El Cajon is lower than the national average, indicating a strong demand for industrial space.

Retail Market

The retail market in El Cajon has been stable over the past few years. The city has several major shopping centers and retail districts that attract both locals and tourists. The vacancy rate for retail properties in El Cajon is slightly higher than the national average, but this is due to new construction projects that are currently underway.

Self-Storage Market

The self-storage market in El Cajon has been growing steadily over the past few years. The city's growing population and job market has created a demand for storage space. The vacancy rate for self-storage properties in El Cajon is lower than the national average, indicating a strong demand for storage space.

Hospitality Market

The hospitality market in El Cajon has been growing steadily over the past few years. The city's proximity to San Diego and its attractions has made it an attractive location for tourists. The vacancy rate for hotel properties in El Cajon is slightly higher than the national average, but this is due to new construction projects that are currently underway.

Commercial Real Estate Loans by Purpose

There are many types of loans available for commercial properties in El Cajon, 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 El Cajon

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 El Cajon. 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 El Cajon

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 El Cajon. Click to get a free insurance quote for your property — no obligation.