Economy in Review

Santa Clarita, California is a thriving city with a diverse economy. The city has experienced steady growth in recent years, with a strong job market and a growing population. The unemployment rate in Santa Clarita is lower than the national average, and the city has a higher median household income than the state of California as a whole.

The city's economy is driven by a variety of industries, including healthcare, education, retail, and manufacturing. The healthcare industry is particularly strong in Santa Clarita, with several major hospitals and medical centers located in the area. The education sector is also a significant contributor to the local economy, with several colleges and universities located in the city.

Multifamily Market

The multifamily market in Santa Clarita is strong, with high demand for rental properties. The city has experienced steady population growth in recent years, which has driven demand for housing. The vacancy rate for multifamily properties in Santa Clarita is low, and rental rates are increasing.

Office Market

The office market in Santa Clarita is also strong, with several major companies located in the area. The city has a diverse mix of office space, ranging from small professional offices to large corporate headquarters. The vacancy rate for office space in Santa Clarita is low, and rental rates are increasing.

Industrial Market

The industrial market in Santa Clarita is thriving, with several major manufacturing and distribution companies located in the area. The city has a variety of industrial properties available, including warehouses and manufacturing facilities. The vacancy rate for industrial properties in Santa Clarita is low, and rental rates are increasing.

Retail Market

The retail market in Santa Clarita is strong, with several major shopping centers and malls located in the area. The city has a diverse mix of retail properties, ranging from small storefronts to large shopping centers. The vacancy rate for retail properties in Santa Clarita is low, and rental rates are increasing.

Self-Storage Market

The self-storage market in Santa Clarita is growing, with several new facilities opening in recent years. The city has a variety of self-storage properties available, ranging from small units to large facilities. The vacancy rate for self-storage properties in Santa Clarita is low, and rental rates are increasing.

Hospitality Market

The hospitality market in Santa Clarita is strong, with several major hotels and resorts located in the area. The city has a variety of hospitality properties available, ranging from small motels to large resorts. The occupancy rate for hospitality properties in Santa Clarita is high, and room rates are increasing.

Commercial Real Estate Loans by Purpose

There are many types of loans available for commercial properties in Santa Clarita, 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 Santa Clarita

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 Santa Clarita. 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 Santa Clarita

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 Santa Clarita. Click to get a free insurance quote for your property — no obligation.