Sourced from the recently released 2016 NAR Commercial Lending Report available at www.nar.realtor/commercial/research

Commercial Transactions

  • 61% of respondents closed deals in 2015
  • REALTORS® closed an average of 8 commercial
  • transactions
  • 94% of sales were valued at or below $5 million
  • 17% of respondents had international clients/investors

Financing

  • Cash comprised 26% of all transactions
  • 61% of transactions had financing with LTV equal to or
  • higher than 70%
  • Lending conditions tightened for 33% of respondents and
  • eased in 31% of respondents’ markets

Top Sources of Capital

  • 31% Local/community banks
  • 25% Regional banks
  • 12% Private investors
  • 8% National banks ("Big Four")
  • 6% Small Business Administration
  • 6% Credit Unions
  • 3% Life insurance companies
  • 2% REITs
  • 2% CMBs
  • 1% Public companies
  • 1% International banks

Speed Bumps

  • 40% of sales failed due to lack of financing
  • Loan underwriting standards caused 54% of financing failures
  • 20% caused by appraisals/valuation
  • 12% due to financing availability
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