Economy in Review

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

According to the Bureau of Labor Statistics, the largest employers in Dayton are healthcare providers, followed by manufacturing companies and educational institutions. The city has also seen growth in the technology sector, with several startups and established companies choosing to locate in Dayton.

Multifamily Market

The multifamily market in Dayton has remained stable over the past year. While there has been some new construction, it has not been enough to significantly impact vacancy rates or rental prices. The U.S. Census Bureau reports that the median rent for a two-bedroom apartment in Dayton is below the national average.

Office Market

The office market in Dayton has seen some new construction in recent years, particularly in the downtown area. However, vacancy rates remain higher than the national average. The city has been working to attract new businesses to the area through tax incentives and other programs.

Industrial Market

The industrial market in Dayton is strong, with several large manufacturing companies located in the area. The city's central location and access to major highways make it an attractive location for logistics and distribution companies as well.

Retail Market

The retail market in Dayton has faced some challenges in recent years, with several large retailers closing their doors. However, there has been some new development in the downtown area and other parts of the city. The U.S. Census Bureau reports that retail sales in Dayton have remained steady over the past year.

Self-Storage Market

The self-storage market in Dayton has seen some new development in recent years, particularly in the suburbs. However, vacancy rates remain low and rental prices have remained stable. The city's growing population and strong economy make it an attractive location for self-storage investors.

Hospitality Market

The hospitality market in Dayton has seen some new development in recent years, particularly in the downtown area. The city has several major attractions, including the National Museum of the United States Air Force and the Dayton Art Institute, which draw visitors from around the country. The U.S. Census Bureau reports that hotel occupancy rates in Dayton have remained steady over the past year.

Commercial Real Estate Loans by Purpose

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

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 Dayton. 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 Dayton

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