A Closer Look At Construction Growth And Commercial Lending Opportunities In The Retail Space

CRE Investors Should Take Note Of Recent Commercial Mortgage Delinquency Rates
September 14, 2017
Help Your Company Circumvent These Common Obstacles For New Commercial Mortgage Investors
September 14, 2017

A Closer Look At Construction Growth And Commercial Lending Opportunities In The Retail Space

imagesxxxThe retail space has had better days, but that doesn’t mean the sector is exhausted of opportunities. Knowing what to expect from the sector will help improve your company’s commercial lending strategy.

It’s difficult to talk about commercial real estate opportunities in the retail sector without discussing the long-term impacts of ecommerce. Investments in retail industry have noticeably slowed, in no large part due to a nation of consumers becoming increasingly comfortable with doing their shopping online. That being said, it is silly to assume that the need for brick-and-mortar locations will completely evaporate. Recent moves by ecommerce giants like Amazon to re-enter the physical space seem to indicate that there will always be a need for a storefront.

That said, it’s up to investors to be diligent in scrutinizing retail properties before reaching out to commercial lending professional. Establish a clear path to success by reviewing and leveraging the latest trends in the retail sector. The following trend overviews can help your company get on track.

● Major Factors Influencing Commercial Retail Today – International commercial real estate firm JLL recently emphasized that three major factors act as the biggest influences on the retail sector. First and foremost, those businesses that are able to create an engaging and distinctive brand experience are the most successful at bringing in repeat customers. Another major trend is a greater dependency on analytics data to match business strategy to customer behavior. Finally, many of the most successful retailers across the country have invested in physical renovations to set themselves apart from the competition.

● Retail Construction Expected To Slow in 2018 – The American Institute of Architects recently released a forecast predicting commercial real estate construction for the rest of 2017 and 2018. According to the data, retail construction is expected to see a 10% increase throughout 2017. Next year, however, that growth is expected to shrink to 4.6%. Why did the AIA peg the retail sector as so vulnerable going forward? The organization also pointed to regional population shifts as a major factor in changes to retail construction. This is a great lead for companies looking for a metric to analyze opportunities in the retail sector.

● Expect More Disruption In The Future – Speaking at the RE Journal Retail + Mixed-Use Conference, Keith Lord of The Lord Companies emphasized that further market shifts are set to make the sector even more competitive. In particular, the increasing relevance of mobile-driven retail experiences is set to influence every level of how retail environments are designed and constructed. This observation is just one of many disruptors that industry experts are expected to commercial retail for years to come. Your company will need to pay special attention to these type of trends to avoid a risky retail investment.

Get To Know The Real Estate Market In Your Area Before Taking Out A Loan
You’ll find what you’re looking for with regard to commercial properties when your company dedicates ample time to the research. Working with a local professional can help make this process easier.

Speak with a private commercial lending professional to get your company up to speed on how retail is performing locally.

Don’t let the numbers discourage you if a promising retail opportunity presents itself.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
clip_image002clip_image004clip_image006clip_image008
About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Comments are closed.