Due to the recent recession many banks have been reluctant to give out too many loans for real estate. However, many are reporting that due to the recent signs of potential economic recovery, many banks in Florida are looking to offer more loans for commercial real estate purchases. The banks are now competing with each other to offer the most attractive loan rates and terms.
The banks were able to rid themselves of loans which were not performing well and are now aggressively pursuing new clients for loans. Many in the real estate industry are reporting that banks are competing heavily to offer loans in certain industries, such as healthcare and office spaces. Ocean Bank in Florida loaned out more than half a billion dollars in loans, according to reports.
Much of the new loans which had been closed by Florida banks resulted from refinancing of commercial real estate properties. The new lower interest rates turned out to be quite attractive to borrowers. On the other hand, a significant portion of the new loans also stemmed from purchasing properties or transferring properties among various investors. Also, banks sold off a significant number of real estate properties via foreclosure and short sales.
With the new low interest rates from Florida banks, it may be a good time to invest in some commercial real estate to open a new business. However, one must be sure to understand all of the applicable rules and regulations, which vary with each type of business. Therefore, thorough research into the applicable laws will be essential.
Source: Miami Today, “Banks again compete for realty loans,” Marilyn Bowden, April 25, 2013