Ensure you never miss an issue of the
real estate business bulletin
Commercial property market hits its stride

Commercial property market hits its stride

by Reporter 0 comments

Staff Reporter

While the residential property market is undeniably flat, it seems the commercial property market is not suffering from the same fate.

Last week at Loan Market Group’s annual conference in Melbourne, senior finance broker Grant Rheuben was named the brokerage’s Commercial Broker of the Year after he wrote in excess of $45 million in commercial loans over the 2011-2012 financial year.

Mr Rheuben said while FY2012 had its challenges, the market did provide some excellent opportunities for a variety of commercial endeavours and commercial lenders will compete hard for good deals.

“The days of easy credit are long gone and the initial presentation of a transaction to the bank is critical. In most cases a business owner only gets one opportunity to showcase why a particular venture will succeed,” Mr Rheuben said.

Mr Rheuben said while interest rates and fees are important in any type of loan, in a commercial deal extra diligence and consideration needs to be given to the loan amount, loan term, loan to property ratio, ongoing repayment obligations and loan covenants.

“All commercial lenders have clear policies on all those factors, however those policies can differ significantly from each bank and many commercial borrowers may find their business proposal is better suited towards a lender they weren’t previously aware of.”

le>.b-autolinks{text-decoration:underline}.b-autolinkshadowbox { display: inline; position: relative; cursor: pointer; color: #428bca;} .b-autolinkshadowbox:hover > span { display: block !important; } .b-autolinkshadowbox__links { white-space: nowrap; z-index: 999; display: none; left: 0; border: 1px solid #bfbfbf; border-radius: 5px; font-size: 12px; top: 12px;color: #000; padding: 10px; position: absolute; background-color: #FFF; box-shadow: 0px 0px 20px 1px #bfbfbf; } .b-autolinkshadowbox__links > a { display: block; padding: 3px 0; }
Commercial property market hits its stride
lawyersweekly logo
promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

The REB Top 100 Agents ranking is the foremost ranking of agents in Australia. It has set the bar for excellence in Australian real estate. To be ranked as an REB Top 100 Agent is the standard real estate professionals strive for. See the full 2018 ranking here!

featured podcast

featured podcast
An industry where the resilient succeeds

Tim Heavyside believes that a strong support team and good foundations are paramount to success in the real estate industry, and with regu...

View all podcasts

Would you consider working for Purplebricks or a similar 'DIY' model?

Yes (7.2%)
No (80.9%)
Perhaps - make me an offer (12%)

Total votes: 209
The voting for this poll has ended on: July 13, 2018
Do you have an industry update?