Economy in Review

Columbia, Missouri is a thriving city with a diverse economy. The city has a strong healthcare sector, with several hospitals and clinics providing employment opportunities. The education sector is also a significant contributor to the local economy, with the University of Missouri and several other colleges and universities located in the area.

The city's unemployment rate has remained relatively stable over the past few years, with a low rate of job loss. The cost of living in Columbia is also lower than the national average, making it an attractive location for businesses and residents alike.

Multifamily Market

The multifamily market in Columbia has seen steady growth over the past few years. The vacancy rate remains low, and rental rates have increased slightly. This can be attributed to the growing population of young professionals and students who are attracted to the city's affordable cost of living and vibrant culture.

Office Market

The office market in Columbia is also experiencing growth, with several new office buildings under construction. The city's central location and strong transportation infrastructure make it an attractive location for businesses looking to expand or relocate.

Industrial Market

The industrial market in Columbia is diverse, with a mix of manufacturing, distribution, and logistics companies operating in the area. The city's proximity to major highways and rail lines makes it an ideal location for businesses that require easy access to transportation networks.

Retail Market

The retail market in Columbia is strong, with several large shopping centers and malls located throughout the city. The downtown area is also home to many small businesses and boutique shops that cater to local residents and tourists alike.

Self-Storage Market

The self-storage market in Columbia is growing, with several new facilities opening in recent years. This can be attributed to the city's growing population and the increasing demand for storage space among residents and businesses.

Hospitality Market

The hospitality market in Columbia is thriving, with several new hotels and restaurants opening in the area. The city's vibrant culture and strong tourism industry make it an attractive location for businesses in the hospitality sector.

Commercial Real Estate Loans by Purpose

There are many types of loans available for commercial properties in Columbia, and the best fit for you depends on your investment strategy. Here are some broad categories of financing available.

Permanent Financing

Permanent financing is a type of loan that remains in place for an extended period of time. It's commonly used to finance the acquisition of commercial properties or to refinance existing debt. Types of permanent financing include bank loans, loans from government-sponsored entities like Fannie Mae and Freddie Mac, HUD loans, credit union loans, loans from life insurance companies, commercial mortgage backed securities (CMBS) loans, and other types of loans depending on the specifics of the commercial property.

Refinancing a Commercial Real Estate Property in Columbia

I wouldn't quite call this a separate type of loan, but I have to mention refinancing in here. These are typically permanent loans (but not always) used to pay down an existing, partially amortizing or interest-only loan.

Often you may be able to time a refinance to happen after an interest rate drop — an ideal solution — but if your loan is maturing during a period of higher rates, you shouldn't stress too much about this. We'll work with you to find the best loan terms for your commercial property by reaching out to potentially thousands of lenders. Just complete the form below, and we'll get to it.

Construction Financing

Construction financing, also known as interim financing, is used to finance the cost of construction for commercial properties. It is usually a short-term loan that covers the cost of land development and building construction. Once construction is completed, the borrower can typically convert this into a permanent loan or pay it off with a new loan.

Bridge Loans

Bridge loans are a type of short-term loan that can be used to cover costs in the interim period between the end of one loan and the beginning of another. They are typically used in commercial real estate to finance the transition between construction financing and permanent financing. Bridge loans generally have higher costs than most other financing options and are often interest-only and non-recourse.

Commercial Real Estate Loans by Type

Depending on the purpose of your loan, you will have several financing options available to meet your investment goals. Read below to learn more about specific loan types.

Bank Loans

Bank loans are a common financing option for commercial real estate in Columbia. They can offer competitive interest rates and flexible terms, but the specifics can vary greatly from bank to bank. While they may not always be the best fit for larger, more complex projects, they can be an excellent option for smaller, simpler properties.

Life Company Loans

Life company loans are typically used to finance high-quality assets in major markets. They generally have lower loan-to-value ratios than most other loan types but offer competitive interest rates and long terms. However, they may not be suitable for riskier projects or properties in less established markets.

Agency Loans

Agency loans, offered by government-sponsored entities like Fannie Mae and Freddie Mac, are typically used for properties that are mostly multifamily. They offer attractive loan terms, low, fixed interest rates, and are non-recourse. However, there are restrictions on the amount of income that can come from other commercial uses.

HUD Loans

HUD multifamily loans are government-backed loans that are primarily used for the construction, substantial rehabilitation, purchase, and refinancing of multifamily properties. These loans offer long-term, non-recourse financing with competitive interest rates but have extensive requirements for qualification.

CMBS Loans

Commercial Mortgage Backed Securities (CMBS) loans are a type of mortgage-backed security backed by commercial real estate loans. Lenders focus more on the strength of the property than the borrower's credit, making them a good option for properties with strong cash flow.

SBA Loans

Small Business Administration (SBA) loans, such as the SBA 7(a) and SBA 504, offer attractive financing options for small businesses. However, the maximum amount for an SBA 7(a) loan is $5 million, while SBA 504 loans can go up to $20 million. They cannot be used for multifamily properties and are only available for properties that the business owner occupies.

Mezzanine Loans

Mezzanine financing is a hybrid form of financing that combines elements of debt financing and equity investment. It is typically used in commercial real estate to fill a funding gap between the primary loan and the total cost of a project.

Commercial Property Insurance in Columbia

This part isn't about loans, but it's just as important to your investment's success. Let's talk (quickly) about insurance.

Insurance premiums have skyrocketed in the past few years, as I'm sure you know. While multifamily gets a lot of the attention, rates for insuring anything from office buildings to shopping centers have jumped significantly.

Janover Insurance Group is dedicated to finding the best insurance solutions for your commercial real estate assets in Columbia. Click to get a free insurance quote for your property — no obligation.