How do commercial construction loans work?
A construction loan is a type of short-term financing to fund a new construction project. If you’re planning to construct a multi-family home, apartment building, high-rise, commercial office building, or another type of large project, you will probably consider obtaining a commercial construction loan.
Commercial construction loans are different from other loans. Most loans are structured so the borrower receives the full amount they are requesting upfront. Then, once the loan is received, the borrower makes payments over a set period of time. However, with construction loans, the borrower does not receive the full amount upfront.Understand the construction loan process
Roughly 50 percent of households in Atlanta, Georgia are renter-occupied. Prices plunged during the peak of COVID, ending eight years of rent growth. From March through May, rents were down 2.2 percent. However, there’s now record demand for apartments in Atlanta. In fact, Georgia as a whole is one of the nation’s top locations for rent demand. Whether you compare rent prices monthly or annually, they are up. Month-over-month some of the fastest-growing cities in the metro area are McDonough, up 5.3 percent, Stockbridge, up 5 percent, and Newnan, up 4.8 percent.
Like many other markets in the Southeast, Charlotte has a record low inventory with a supply of approximately one month. Low interest rates will continue to drive demand for homeownership and investing. Single-family rental owners in the metro area have realized a five-year value increase of nearly 45 percent and those who purchased homes in 2012 realized a nine-year increase of 70 percent or higher. As for rental rates, real estate investors have had a five-year rental appreciation of 34 percent overall or 6.8 percent per year.
According to the Alabama Business Confidence Index, business confidence in the area is at 65.5, increasing 8.0 points, indicating strong expectations for the rest of 2021. During the first quarter of 2021, Birmingham’s multi-tenant office market remained relatively flat, with an overall negative absorption of 13,172 square feet. The Midtown submarket had the lowest overall vacancy rate of 8 percent, followed by the Central Business District at 14.3 percent.
Office leasing activity for Orlando has seen a gradual uptick as tenants return to the office. There were over 530,000 square feet of space leased in the first quarter. The research Park and Southwest Orlando submarkets were the most active. Asking rental rates remain nearly unchanged, seeing less than a 1.0 percent increase from the end of 2020. Those looking for deals during the middle of the pandemic noticed the market remained tight as the inward migration trend for employers in Central Florida continued.