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medical spas, which offer multiple health and aesthetic ser- vices. Because doctors are usually highly credit-worthy, and these businesses tend to be highly successful, banks are offer- ing physicians incredible opportunities with highly advanta- geous terms if a doctor wants to consider buying commercial space for such a practice.
1. Commercial “owner-occupants” began to automatically consider becoming landlords as well. With commercial markets presently growing past what many analysts predicted for 2018, business owners who purchased commercial space for their own use have found leasing out part of that space can pay, often in full, their monthly debt obligations that come with ownership. Thanks to entrepreneurs’ innate flex- ible and creative thinking patterns, I have seen owners come up with all sorts of ways to lease space, from offering small areas to jewelry repairmen and diamond appraisers in an existing store to supporting startups and offering co-working opportunities. 2. Med-spas continued to evolve. Our national healthcare system changed, likely permanent- ly, in 2010 when the Patient Protection and Affordable Care Act (also known then as “Obamacare”) passed into law. That law has changed multiple times since and will likely continue to do so, but the changes it effected in physicians’ mindsets about their practices will live on. One way in which these mindset shifts manifested is a growing practice involving
3. Commercial buyers became savvier about financing options.
In the past, investors often assumed that buying a commercial building was something so staggeringly difficult that they could never make the jump from leasing to owning (or, for that matter, from residential to commercial properties). Lenders often were
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Pamela J. Goodwin is the founder and CEO of Goodwin Commercial a commercial real estate firm specializing in retail/restaurant development, brokerage and consulting firm in Dallas, Texas, and a Think Realty coach. Learn more about her commercial real estate courses at ThinkRealty.com/Pamela or reach her at pam@pamgoodwin.com.
Banks Still Want to Lend THE CONVERSATION ABOUT REAL ESTATE DEBT IS BECOMING MISLEADING.
by Pamela J. Goodwin
I
t seems like everyone, from the investors I meet at local meetups to the national news media, is talking about interest rates going up. In fact, I sometimes feel as if we have been talking about this for almost 10 years now. While it is certainly true that interest rates have spent an unprece- dented amount of time at historic lows and, furthermore, that they are going to have to rise eventually, investors who spend too much time mired in this particular conversation will miss out on incredible opportunities available to them in today’s commercial and residential real estate markets. In Texas, for example, the lending environment, while cer-
tainly more stringent than it was prior to the housing crash in the mid-2000s, is very “pro-lending,” for lack of a better word. I hear from banks and lenders directly on a regular basis because of my position as a commercial real estate broker in the state. What do they want? They want to know if I have any good possible borrowers looking for funding. If you spend all of your time worrying about interest rates rising tomorrow, you may miss your opportunity to take advantage of still-low, fixed rates today. Looking back over the course of the past year, some really clear trends have developed in the commercial real estate space:
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