Economy in Review

Columbus, Ohio has a diverse economy with major industries including healthcare, education, government, and retail. The city has experienced steady job growth over the past few years, with the unemployment rate remaining below the national average. The cost of living in Columbus is also lower than the national average, making it an attractive location for businesses and residents alike.

According to the U.S. Census Bureau, Columbus has a population of over 900,000 people and is one of the fastest-growing cities in the Midwest. The city's strong economy and affordable cost of living have contributed to this growth, with many young professionals and families moving to the area.

Multifamily Market

The multifamily market in Columbus has been strong in recent years, with high demand for rental properties. The vacancy rate for apartments in the city remains low, and rent prices have continued to increase. This is due in part to the growing population and job market, as well as a lack of new construction in the area.

Office Market

The office market in Columbus has also been performing well, with a low vacancy rate and steady demand for space. The city's strong economy has attracted many businesses to the area, particularly in the healthcare and technology sectors. This has led to new construction and renovation of existing office buildings.

Industrial Market

The industrial market in Columbus is thriving, with a high demand for warehouse and distribution space. The city's central location and access to major highways make it an ideal location for logistics companies. Additionally, there has been an increase in manufacturing activity in the area, contributing to the strong industrial market.

Retail Market

The retail market in Columbus has seen some challenges in recent years, with the rise of e-commerce and changing consumer preferences. However, the city's strong economy and growing population have helped to support the retail market. There has been new construction of retail space in certain areas of the city, particularly in mixed-use developments.

Self-Storage Market

The self-storage market in Columbus has been performing well, with a high demand for storage units. This is due in part to the growing population and job market, as well as an increase in residential construction. There has been new construction of self-storage facilities in the area to meet this demand.

Hospitality Market

The hospitality market in Columbus has been strong, with a high demand for hotel rooms. The city's growing population and strong economy have contributed to this demand, as well as an increase in tourism. There has been new construction of hotels in certain areas of the city, particularly near major attractions and event venues.

Commercial Real Estate Loans by Purpose

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

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 Columbus. 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 Columbus

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