Every business starts out with an idea, but, oftentimes, it also begins with a commercial construction loan. A business would be useless without a roof over its head. Needless to say, emerging and established businesses are always looking for better quarters for their employees.
It is for this reason that commercial construction loans are so critical for American businesses. Specifically, commercial mortgage-backed securities, or CMBS, are a driving force of all kinds of commercial construction loans. A CMBS is a mortgage-backed security that depends on commercial mortgages as opposed to residential real estate mortgages. CMBS are acquired by business owners in order to fund commercial property and construction. In the business world, CMBS are nothing to trifle with. According to a variety of financial sources, $1.4 trillion in commercial mortgages will mature from 2014 to 2017. A quarter of that — some $350 billion — are CMBS, the maturity of which will reach a peak of $113 billion in 2016. Evidently, financial institutions trust CMBS with their commercial mortgage loans.
CMBS are popular in that they usually come with good commercial mortgage rates and are very reliable. By 2017, an estimated 11,000 CMBS loans will mature. Think of all the property, all the businesses, and all the products that will arise from those CMBS loans. Think of the tremendous success millions of people will enjoy and spread throughout the country. The returns on CMBS are incredible and are being taken full-advantage off by thousands of intrepid businessmen and businesswomen throughout the country — and, of course, the world.
So, whether you are an unknown entrepreneur who wants a business office of your own or the head of a giant corporation who wants more office space, a commercial construction loan may be just the thing your business needs to hit the ground running.
What do you think about commercial construction loans and CMBS? Feel free to leave a comment at the bottom.