Tag: Boston MA Office Space

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How to Get Tenants to Your Building

Landlords are landing tenants.   What's their secret? They know how to stimulate demand. Landlords landing tenants understand this secret and know that most brokers and landlords are spending time on the "symptom" and not the "problem".   The "symptom" is easy to treat: do more. The "problem" is much more difficult: change your approach. Read more

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Boston Office Fast Update

According to CoStar Research: Boston has 2.3M SF in additional inventory in Q1 2009 Boston has 2.1M SF of negative net absorption by Q1 2009. Note: Tenants are trying to hold out for a more tenant friendly marketplace. Companies are struggling to understand their direction and are delaying on space decisions. They also don't want to pay for unamortized costs from improvements made for their leased space that are being written down. They are also hoping to hire back laid off staff. To boot, tenants are worried about image of sublet space making their business look weak in this environment. Days on market for leasing risen from 166 days in 2005 to 474 in 2009. Boston is the 6th largest office market in the country with 348 M SF. Boston is reporting 11% vacancy rate. The average office lease is $23.28/SF.

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Get up to 90% financing with an SBA 504 loan

Not long ago, if a borrower was simply able to complete the application for a 100% loan, and they would be approved.

Talk to those who have tried the same in recent months, and you’ll hear a different story – one in which lending institutions have limited borrowing to the point of virtually freezing the real estate market. Buyers are quick to become discouraged when loans are no longer readily available without putting 30% or more down. However, tough market conditions have increased the use of specialized programs to fill the gap.

The SBA 504 program is a popular option for owner-occupied properties in need of fast cash. Offered by the New England Certified Development Corporation, the product is designated for projects ranging in size from $500,000 and up, and can be used to purchase land or buildings, new construction or expansion, renovation, leasehold improvements, or equipment.

With an SBA 504 loan, a borrower obtains a first mortgage loan for usually 50% of the project from a bank. There is no maximum dollar amount. New England Certified then provides a secondary loan (called a debenture) for the next 40%. Certain manufacturing entities are eligible for up to a $4 million debenture. All other industries are capped at $2 million. Up to 90% financing means the borrower typically provides only 10% equity for the project. Loan terms may extend as long as 20 years, and low fixed interest rates (fixed for 20 years for real estate; 10 years for equipment) are available on up to 40% of the project.

Borrowers must:

· Be located in New England.

· Operate for profit.

· Owner must occupy part of the property.

· Have a tangible net worth of $8.5 million or less.

· Have an average net profit of less than $3 million over the last two fiscal years.

Existing buildings must be at least 51% occupied, or 60% for new construction.

Just because it’s more challenging to obtain a 90% loan these days does not mean it’s impossible!

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