Commercial Loans in COVID-19
Commercial loans help investors and businesses grow their portfolios, even during the COVID-19 pandemic. There are an array of products and property types available. Depending on your needs, you can get fast and flexible financing. Commercial Mortgage Depot (CMD) helps business owners find great commercial loan rates in New York, New Jersey, Connecticut, and Pennsylvania. Contact our offices in Clifton, NJ today!
Buying the Right Commercial Property in COVID-19
As you look to buy the right commercial property during, COVID-19, prepare to go online and attend virtual open houses. On your tours, look for any key areas of the property—such as ample indoor and outdoor space or open-air conversions—that make it easier for a business to operate with social distancing practices. Commercial retailers are fearful as restaurants and bars may be forced to close or see less business. They will seek spaces that can be modified for delivery and take-out services. Commercial properties that can be used for leisure may see less demand but will still fill an important need, especially with airy open spaces.
Other Ways to Utilize Commercial Property in COVID-19
The market is seeing many sectors of commercial real estate take a hit. It will take some time to see how people are reacting and know what businesses will thrive. Certainly, there will be declines in demand for indoor senior gathering and skilled care facilities. It is clear these spaces are where the virus is spreading the most. Hotels and casinos are seeing less demand, but in certain areas, still doing business with adapted practices.
A safe bet could be buying property to provide for cell phone towers, and large-scale distribution facilities. There will always be demand for rental housing, but some are fearful as unemployment rises that tenants cannot pay rent. Lenders may weigh a rental property with more scrutiny. Although many apartment rentals struggle as tenants cannot pay rent, there will usually be a large need for housing in many areas. It remains to be seen how long eviction moratoriums will last and how lenders will react.
Impacts of COVID-19 to Commercial Loans
As we work with new businesses and experienced owners to grow and acquire new commercial investments—we are still seeing people able to get financed. Lenders generally will be less flexible on terms for debt coverage and will look closely at how you plan to use the space. Data centers, grocery retail, pharmacies, e-commerce, and warehouses are seeing the greatest surges in demand.
Commercial Mortgage Depot (CMD) helps business owners find great commercial loan rates during COVID-19 in New York, New Jersey, Connecticut, and Pennsylvania. Contact our Clifton, NJ team today to discuss your business plans.
