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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
Notice: The information on this page may not be current. The archive is a collection of content previously published on one or more NAR web properties. Archive pages are not updated and may no longer be accurate. Users must independently verify the accuracy and currency of the information found here. The National Association of REALTORS® disclaims all liability for any loss or injury resulting from the use of the information or data found on this page.