Commercial Property Loans in Lansing, Michigan

Economy in Review

Lansing, Michigan is the capital city of the state and has a diverse economy. The city has a strong manufacturing base, with major employers including General Motors and Michigan State University. The healthcare industry is also a significant contributor to the local economy. The unemployment rate in Lansing is slightly higher than the national average, but has been steadily decreasing over the past few years.

The city has seen steady population growth over the past decade, with a current population of approximately 118,000. The median household income in Lansing is slightly lower than the national average, but the cost of living is also lower than many other cities in the United States.

Multifamily Market

The multifamily market in Lansing has been strong in recent years, with a high demand for rental properties. The vacancy rate for apartments in Lansing is lower than the national average, and rental rates have been steadily increasing. This is due in part to the growing population and the presence of several universities in the area.

Office Market

The office market in Lansing has been stable, with a steady demand for office space. The vacancy rate for office space is slightly higher than the national average, but rental rates have remained steady. The city has several large office buildings, including the Boji Tower and the Accident Fund Building.

Industrial Market

The industrial market in Lansing is strong, with a high demand for manufacturing and warehouse space. The city has several industrial parks, including the Lansing Industrial Park and the South Washington Industrial Park. The vacancy rate for industrial space is lower than the national average, and rental rates have been steadily increasing.

Retail Market

The retail market in Lansing has been stable, with a steady demand for retail space. The vacancy rate for retail space is slightly higher than the national average, but rental rates have remained steady. The city has several large shopping centers, including the Lansing Mall and the Frandor Shopping Center.

Self-Storage Market

The self-storage market in Lansing has been strong in recent years, with a high demand for storage units. The vacancy rate for self-storage units is lower than the national average, and rental rates have been steadily increasing. The city has several large self-storage facilities, including the CubeSmart Self Storage and the Simply Self Storage.

Hospitality Market

The hospitality market in Lansing has been strong, with a high demand for hotel rooms. The city has several large hotels, including the Radisson Hotel Lansing and the Crowne Plaza Lansing West. The occupancy rate for hotels in Lansing is slightly higher than the national average, and room rates have been steadily increasing.

Commercial Real Estate Loans by Purpose

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

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 Lansing. 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 Lansing

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