Economy in Review

Moreno Valley, California is a city that has experienced steady economic growth in recent years. The city's economy is diverse, with a mix of industries including healthcare, logistics, and manufacturing. The unemployment rate in Moreno Valley is lower than the national average, indicating a strong job market. The city's population has also been steadily increasing, which has contributed to the growth of the local economy.

According to the U.S. Census Bureau, the median household income in Moreno Valley is slightly below the national average. However, the cost of living in the city is also lower than many other areas in California, making it an attractive location for businesses and residents alike.

Multifamily Market

The multifamily market in Moreno Valley has been growing steadily in recent years. The demand for rental properties has increased due to the city's growing population and strong job market. According to data from the Bureau of Labor Statistics, the unemployment rate in Moreno Valley is lower than the national average, which has contributed to an increase in demand for rental properties.

The average rent for a one-bedroom apartment in Moreno Valley is slightly below the national average, making it an affordable option for renters. However, with the growing demand for rental properties, landlords have been able to increase rents slightly in recent years.

Office Market

The office market in Moreno Valley has also been growing steadily. The city's diverse economy has attracted businesses from a variety of industries, which has contributed to an increase in demand for office space. According to data from the Bureau of Labor Statistics, the unemployment rate in Moreno Valley is lower than the national average, indicating a strong job market that is driving demand for office space.

The average asking rent for office space in Moreno Valley is slightly below the national average, making it an attractive location for businesses looking to expand or relocate.

Industrial Market

The industrial market in Moreno Valley is strong, with a mix of manufacturing, logistics, and distribution companies operating in the area. The city's location near major transportation routes has made it an attractive location for businesses that rely on efficient transportation and logistics networks.

The average asking rent for industrial space in Moreno Valley is slightly below the national average, making it an affordable option for businesses looking to expand or relocate.

Retail Market

The retail market in Moreno Valley has been growing steadily in recent years. The city's growing population and strong job market have contributed to an increase in consumer spending, which has driven demand for retail space. According to data from the Bureau of Labor Statistics, the unemployment rate in Moreno Valley is lower than the national average, indicating a strong job market that is driving consumer spending.

The average asking rent for retail space in Moreno Valley is slightly below the national average, making it an attractive location for retailers looking to expand or open new locations.

Self-Storage Market

The self-storage market in Moreno Valley has been growing steadily in recent years. The city's growing population has contributed to an increase in demand for storage space. According to data from the U.S. Census Bureau, the median household income in Moreno Valley is slightly below the national average, indicating that residents may be more likely to use self-storage facilities due to smaller living spaces or a need for additional storage.

The average asking rent for self-storage units in Moreno Valley is slightly below the national average, making it an affordable option for residents and businesses looking for additional storage space.

Hospitality Market

The hospitality market in Moreno Valley has been growing steadily in recent years. The city's location near major transportation routes and attractions such as Lake Perris and the March Field Air Museum have made it an attractive location for hotels and other hospitality businesses.

The average daily rate for hotels in Moreno Valley is slightly below the national average, making it an affordable option for travelers.

Commercial Real Estate Loans by Purpose

There are many types of loans available for commercial properties in Moreno Valley, 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 Moreno Valley

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 Moreno Valley. 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 Moreno Valley

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 Moreno Valley. Click to get a free insurance quote for your property — no obligation.