Commercial Real Estate Outlook for 2020

Commercial lending on the west coast is and will remain competitive especially in California (the largest state serviced by ReProp Financial). Due to the competition in California,

ReProp Financial tries to focus on niche locations where there is less competition. For instance, ReProp Financial recently provided funding for an old mill site in a secondary market that is going to be used for an alternative purpose.

The old mill is a prime example of how ReProp is seeing alternative uses compared to the historical more traditional use. In the future months, ReProp Financial will be trying to expand more in Oregon, where there is less competition and thus better rates for private lenders.

If interested in commercial real estate, you may be wondering how the situation with the coronavirus is impacting the commercial property market. With all of the press surrounding the coronavirus, many investors are moving away from the stock market and towards other investment opportunities such as commercial real estate.

If you are a small business owner and find yourself wondering what you can do to simplify the process for obtaining financing from a private lender like ReProp Financial, the answer is to have your finances in order. You may be asking yourself what having your finances in order should be like; whether it be presenting financial tax records or Quickbooks records. Quickbooks records tend to suffice but we may require tax returns (but that’s not common). If curious about turnaround time for a commercial real estate loan inquiry once you have completed your paperwork, it isn’t uncommon to see approval within 48 hours.

With the current state of the economy, it appears that 2020 is looking like a borrower’s market and that is due to the availability of lending and increased leverage in the market.

As a potential borrower, you may be wondering what ReProp Financial offers over other lenders. The answer is that Reprop customizes all loans to borrowers’ needs. We offer bridge financing with 1 to 5 year terms as well as 10 to 15 year fully amortized loans. Long-term financing options are also fairly popular because borrowers don’t have to continually refinance every 24 to 36 months, which saves borrowers money paying additional brokers and lenders fees. .

Another interesting topic in CRE for 2020 is in regards to the cannabis industry because it appears that the cannabis market is changing on the west coast. This is due to the fact that the rush for real estate has slowed and, as a result, ReProp isn’t seeing as many requests as they did in 2017 & 2018.

In addition, the values that operators are putting on real estate are becoming more reasonable and the premiums paid in the past are coming down for green zone properties. This is great because a lot of cannabis operators have revitalized real estate that was once neglected and rundown.

If you need a commercial real estate loan or investment in California, Washington, Oregon, Arizona, Idaho or a surrounding state, ReProp Financial would be happy to assist. Give our team a call today at 707-444-7711!