Financing Commercial Real Estate

Financing Commercial Real Estate?

Good news is just out from the National Association of Realtors in a recent article, “Lenders Return to Commercial” by Lawrence Yun, written for the nation’s largest association for real estate professionals (NAR) publication, REALTORmag. 

According to Yun, “The improving economy and an improved lending environment are the primary reasons for the gains. But it is the second factor—lending—that is making the biggest difference. In our latest survey of commercial practitioners, 42 percent said they’re seeing credit easing.”

Yet, there are still hurdles to overcome, states Yun, including the requirement to put at least 30 percent down on commercial real estate purchases. The reason for these tight restrictions, according to Yun, is that the majority of commercial transactions are under $1 million and are most often funded by small community banks. Without the backing of federal programs like FHA, Fannie Mae, and Freddie Mac, as in residential lending, commercial lenders have reason to be additionally cautious.

At CERRON Commercial Properties, we are indeed seeing an increase in commercial transactions, due in part to the community banks lessening some of their requirements. If you are considering purchasing a commercial real estate property and need to choose a lender, our team recommends you review our “How to Choose a Commercial Lender” checklist, as you make this important decision.

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Commercial Real Estate Trends for 2013

South Metro space for lease or for sale

The overall commercial real estate market is improving with most sectors showing strength. The combination of low interest rates, better market fundamentals, and stronger business volumes for many companies, have helped contribute to this commercial real estate market improvement.

CoStar reported reported the…

  • “Demand for U.S. warehouse space moved from the recovery to the expansion phase in late 2012 as rising occupancy rates and limited new construction helped push (up) rents…” Randyl Drummer, CoStar News
  • “Tenant demand for office space ended 2012 on a strong note” with a good 4th quarter in most office sectors. Randyl Drummer, CoStar News (Follow him on Twitter)

Therefore, it appears that “commercial real estate markets are nearing a point that the properties are not going to get any less expensive,” Mark Heschmeyer, CoStar News. At CERRON, we have several quality listings available in many sectors, including:

  • Warehouse space for lease at 21725 Hamburg Avenue, Lakeville
  • Office/Warehouse/Showroom for sale at 21205 Eaton Avenue, Farmington
  • Office space for sale at 2809 Cliff Road East, Burnsville
  • Office space for lease at 3470 Washington Drive, Eagan
  • Office space for sale at 2430-2438 – 117th St. E., Burnsville
  • Office space at 11995 County Rd. 11, #210, Burnsville

At CERRON Commercial Properties, a south metro MN real estate brokerage, we are ready to assist you with your commercial real estate needs. Contact us today to discuss how we can find the right property solution for you…with you!

Read more: http://www.costar.com/News/Article/Rising-Demand-Propels-Warehouse-Market-to-Strong-2012-Finish/145459, http://www.costar.com/News/Article/Recovering-Office-Demand-Sets-Stage-For-Rent-Growth-Across-The-US/145245, and http://www.costar.com/News/Article/2013-Deal-Strategy-Time-To-Move-Forward-but-Prudently/145424

Sound the Alarms – Firehouse Grille Coming Soon!

APPRO Development & CERRON Commercial Properties are very excited to be working on a new project which will bring innovative ownership and fresh ideas to an existing (former restaurant) building in the City of Elko New Market.

Elko New Market is located just four miles south of Lakeville and two miles west of I-35, with a growing population, in one of Minnesota’s fastest growing counties (Scott County, Minnesota).

The Firehouse Grille, located at 7875 Old Towne Road, has been purchased by new ownership and is currently under renovation by APPRO Development, Inc., as the design build, general contractor. The new owners have been pouring over every detail of this building from the ceiling to the bar to the floor and have chosen some unique materials…

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You will have to wait and see how they have used these materials in the design-build process when you stop on out for a bite to eat!

As a result of all of this work, the Firehouse Grille will surely be Scott County’s best new culinary refuge and preferred stomping grounds for area firefighters and community members alike.

So, go ahead – pack up your hoses, silence the sirens, park the trucks, hang up the gear, and slide on down to the new Firehouse Grill in Elko New Market! Opening early 2013!

APPRO & CERRON have been providing property solutions to meet the unique needs of each of their clients for more than 25 years in the South Metro area of Minnesota and across North Dakota and Montana. Give us a call today to discuss your unique needs – it would be our honor to help you find the perfect solution for you and your business. Feel free to contact us at any time.

Lakeville Manufacturers Appreciation Event – 2012

Lakeville Manufacturers Reception APPRO CERRON Wine Giveaway
Personalized Wine Bottles for APPRO & CERRON Drawing

I had the privilege of attending this year’s Lakeville Manufacturers Appreciation Reception, on October 24, 2012, from 4:30 p.m. to 6:30 p.m. The event was sponsored by the City of Lakeville and Dakota Electric Association, Frontier Communications, Minnesota Energy Resources, and Xcel Energy. The event was held at the Lakeville Holiday Inn and Suites. The reception was well attended, including Lakeville Mayor Mark Bellows, who gave an optimistic address to attendees and was also joined by City of Lakeville staff and council members.

I was delighted to represent APPRO Development, Inc., general contractor, design-build company and CERRON Commercial Properties, LLC, commercial real estate broker, both located in Lakeville, MN, along side many other Lakeville businesses. I learned a lot about some amazing manufacturers in our local business community.

As a thank you, and to help celebrate APPRO’s 25th anniversary this year, we conducted a drawing for two personalized bottles of wine. We are proud to announce the following winners:

Craig Nelson a Project Manager with BTD Manufacturing was the winner of a bottle of wine (as Craig has a generous spirit, he may be sharing his bottle with fellow friends – thank you for helping to spread the cheer!)

BTD-APPRO Wine Giveaway 2012

The other winner was Andrew Shaffer, who along with his wife Shelly, are the owners of Bass Flexible Packaging, Inc. I understand they were pretty excited to receive the wine and have planned a date night to celebrate!

APPRO Bass wine giveaway, 2012

Congratulations to the winners – thank you for helping us celebrate 25 years! It is our privilege to serve and be a part of our local manufacturing community!