Economy in Review

Meridian, Idaho has experienced steady economic growth in recent years. The city's unemployment rate remains low, and the job market continues to expand. The Bureau of Labor Statistics reports that the city's top industries include healthcare, education, and retail. Additionally, the U.S. Census Bureau notes that the city's population has grown significantly in the past decade, indicating a strong demand for housing and commercial real estate.

Overall, Meridian's economy is stable and poised for continued growth. This makes it an attractive location for investors looking to finance commercial property loans.

Multifamily Market

The multifamily market in Meridian is strong, with a high demand for rental properties. The city's growing population and low unemployment rate make it an attractive location for renters. Additionally, the city's proximity to Boise State University makes it an ideal location for student housing. Investors looking to finance multifamily properties in Meridian can expect a healthy return on investment.

Office Market

The office market in Meridian is also growing steadily. The city's low unemployment rate and expanding job market make it an attractive location for businesses looking to relocate or expand. Additionally, the city's proximity to Boise makes it an ideal location for businesses that need access to the state capital. Investors looking to finance office properties in Meridian can expect a stable market with potential for growth.

Industrial Market

The industrial market in Meridian is also strong. The city's central location and access to major highways make it an ideal location for distribution centers and manufacturing facilities. Additionally, the city's low business costs and tax incentives make it an attractive location for businesses looking to expand or relocate. Investors looking to finance industrial properties in Meridian can expect a stable market with potential for growth.

Retail Market

The retail market in Meridian is thriving, with a high demand for commercial space. The city's growing population and expanding job market make it an attractive location for retailers. Additionally, the city's proximity to Boise and other major cities in the region make it an ideal location for businesses that need access to a large customer base. Investors looking to finance retail properties in Meridian can expect a stable market with potential for growth.

Self-Storage Market

The self-storage market in Meridian is also strong, with a high demand for storage units. The city's growing population and expanding job market make it an attractive location for renters who need extra storage space. Additionally, the city's low business costs and tax incentives make it an ideal location for self-storage businesses. Investors looking to finance self-storage properties in Meridian can expect a stable market with potential for growth.

Hospitality Market

The hospitality market in Meridian is also thriving, with a high demand for hotels and other lodging options. The city's proximity to Boise and other major cities in the region make it an ideal location for travelers. Additionally, the city's growing population and expanding job market make it an attractive location for business travelers. Investors looking to finance hospitality properties in Meridian can expect a stable market with potential for growth.

Commercial Real Estate Loans by Purpose

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

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 Meridian. 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 Meridian

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