Economy in Review

Cincinnati, Ohio is a thriving city with a diverse economy. The city has a strong manufacturing sector, with major employers including Procter & Gamble and General Electric. The healthcare industry is also a significant contributor to the local economy, with companies such as Cincinnati Children's Hospital and Mercy Health headquartered in the area.

The city has seen steady job growth in recent years, with unemployment rates consistently below the national average. The cost of living in Cincinnati is also relatively low compared to other major cities, making it an attractive location for businesses and residents alike.

Multifamily Market

The multifamily market in Cincinnati has been strong in recent years, with high demand for rental properties driving up prices. According to data from the U.S. Census Bureau, the city's population has been steadily increasing since 2010, which has contributed to the demand for rental housing. Developers have responded to this demand by building new apartment complexes throughout the city.

Office Market

The office market in Cincinnati is also strong, with a number of large companies headquartered in the area. The city has seen significant investment in its downtown area in recent years, with new office buildings and mixed-use developments being built. According to data from the Bureau of Labor Statistics, the professional and business services sector is one of the fastest-growing industries in the region, which bodes well for continued growth in the office market.

Industrial Market

Cincinnati has a long history as a manufacturing hub, and the industrial market remains an important part of the local economy. The city is home to a number of large industrial parks, which house companies involved in everything from food processing to advanced manufacturing. According to data from the Bureau of Labor Statistics, employment in the manufacturing sector has remained relatively stable in recent years, which is a positive sign for the industrial market.

Retail Market

The retail market in Cincinnati has faced some challenges in recent years, with the rise of e-commerce leading to the closure of some brick-and-mortar stores. However, the city has seen significant investment in its retail sector, with new shopping centers and mixed-use developments being built. According to data from the Bureau of Labor Statistics, employment in the retail sector has remained relatively stable in recent years, which is a positive sign for the industry.

Self-Storage Market

The self-storage market in Cincinnati has been growing in recent years, with demand for storage space increasing as the city's population grows. According to data from the U.S. Census Bureau, the number of housing units in the city has been steadily increasing since 2010, which has contributed to the demand for self-storage facilities. Developers have responded to this demand by building new facilities throughout the city.

Hospitality Market

The hospitality market in Cincinnati has been strong in recent years, with a number of new hotels and restaurants opening throughout the city. The city is home to a number of major attractions, including the Cincinnati Zoo and Botanical Garden and the National Underground Railroad Freedom Center, which draw visitors from around the world. According to data from the Bureau of Labor Statistics, employment in the leisure and hospitality sector has been steadily increasing in recent years, which bodes well for continued growth in the industry.

Commercial Real Estate Loans by Purpose

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

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 Cincinnati. 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 Cincinnati

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