April 2022 Commercial Lending Success and News

Good morning to Springtime and hope for more rain;

Back to Business – Commercial Investing

Stay Strong – Be of Great Courage – Be Prepared

Take Full Advantage of Great Rates – Today!!

New Year – New Dynamics  Change continues to be our constant. Spiking gas prices, peaking and settling back down a bit, for now. Food prices are challenging, while commercial vacancy rates. stubbornly high. The beat goes on.

Other News: Spreading gap between 10 Yr & 2 Yr is now narrowing. After a quick drop to a negative yield, but a couple of weeks ago, has bounced back positive. Keep watching.

Call with questions. These challenging times require patience, careful review, and good preparation. 

Call to Action – Bad News and Good News

The Bad News:

Commercial market: How strong is it? Are cash flows still exceeding interest expense? Can they pass on inflationary costs or will it hurt the bottom line?

Commercial vacancy rates in San Jose, hit near-turn highest level for 1st Q 2022. This due to companies vacating space and NOT from new product, coming online.

Retail sales are holding up. Yet according to BofA analysis, most of these purchase dollars are adding to total credit card debt. These numbers are about 30 % higher debt than pre-pandemic. 

To this, another worrisome data-point: Cass-Freight index is heading upward, but slowing.

The Good News:

Recession / stagflation remains on the horizon. This contrary to many of the fear “pundits”. 

What to watch out for: Unemployment rates bouncing off the bottom, followed by new, higher rates. Anticipate recession, as this measure of rates is 100 % accurate, since 1950.  Next watch: The 2-year vs 10-year yield curve. This rate is gyrating both negative and positive. If a steady negative, history suggests a recession within the following 16 months. November elections are important. 

Suggestion: In these uncertain times, look for more “Bridge-lending” this year – and next. It is a great lending option, when traditional commercial underwriting falls short.  Let’s Talk Now.

SBA LENDING: Full Steam Ahead

1) SBA lending continues full steam, 2) Refinance window has re-opened, and 3) some rates on buildings, starting in the 2’s % !!

Call Today! – Don’t Delay!

News on Office Vacancies: It will be a very interesting year to watch, While most office buildings have not experienced large increases in vacancies due to the long-term nature of leases, this year leases for 243 million square feet come due, 11% of all US office space; the most ever in a year. The current vacancy rate is a post-pandemic high of 12.2%, up from 9.6% in 2019. Inquiries by potential tenants are down 50% from pre-pandemic levels and rising rates don’t help.

Suggestion: Do all you can for your local Small Business.

One cannot repeat this enough. WE need them.

If you are ready, then let’s get going. Let’s talk today.

We know the paper work, the process, and how they think

Projects in the Works:

 Apartments: Yes to out-of-state, 1st time investors. 

 Land to Build and Fix n Flip: These market holds steady. True for our repeat clients in this space, as well as new people coming into the market

 On-Edge Financing:  Numbers continue strong, for those seeking selling strategies to avoid / defer paying Capital Gains taxes. Good News:  We offer proven and effective tools to keep your cash working for you – today. Are you consider selling, let’s first meet to discuss tax burdens and tools to avoid or delay, the impact. Let’s talk first and answer questions about differing taxes. Such is good stewardship of your hard earned estate. Let’s talk. Information is key and a needed first Step in understanding differing tax options. Call today.

Yet More Financing: Standard financing of investment properties. This includes apartments and NNN properties, most sought after by lenders. Said properties are what lenders are seeking . God News: Cap rates are still very low and market participants remain very active.


As a trained and proven broker: WE provide a needed ray of hope, in uncertain times. For our commercial clients: WE provide a straightforward, careful review of available lenders, with a full range of lending options. If you are ready, they are ready. Together we can make your investment dreams happen. It is an excellent pathway to success – uniting a strong, solid loan application, with interest rates to good to pass up. We are time-tested, with quality lenders ready to lend. Call today. 


Trust the value and peace of getting your loan done – right.

Many blessings for family and friends.