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Commercial Real Estate Loans Owner Occupied: Ready to Expand?

December 18, 2023

One of the most pivotal moments for any small business is transitioning from renting to owning business property. Through property ownership, businesses may be able to expand in a way that supports long-term growth and stability. Oftentimes, loan financing is needed to make this a reality.

Owner occupied commercial real estate loans provide the potential for business owners to own their own space for the first time or expand their current business into a larger and more productive facility.

Discover if your business is ready for property ownership or expansion through a commercial real estate owner-occupied loan and why Texas Gulf Bank is the experienced lending partner you need on your side.

How to Know if Your Business is Ready to Expand?

Just about every business owner strives to reach record-high sales and a growing customer base. Over time, sustained business success can result in outgrowing current facilities or an inability to keep up with product or customer demands.

Whether your business is several years old or has been running for decades, your company may be ready to transition to property ownership or to expand by moving into a larger site.

Your business may be ideally positioned for owner-occupied commercial real estate loans if the following signs are true of your current operations:

  • Increased production
  • Improved sales
  • Expanded inventory
  • Limited customer space
  • Outdated facilities
  • Consistently positive cash flow
  • Increasing rent prices
  • Executable long-term business plans

If your small business is experiencing any of these scenarios, buying or expanding into a larger facility could be a smart choice – with the help of owner-occupied commercial real estate loans. This can be especially true if your business has a long-term vision for your commercial property with plans to stay in one location for an extended period of time.

Your company’s growth potential shouldn’t be hindered because of a lack of space, outdated facilities, or rising rent costs. You may be able to take advantage of a commercial lending option in Texas that fits your needs.

The Benefits of Owner Occupied Commercial Real Estate Loans 

Purchasing commercial real estate for an owner occupied property can provide a range of benefits for business owners. Some of these advantages include the following:

Opportunity to Build Equity

Commercial real estate loans enable you to invest in your business by building equity through mortgage payments instead of paying monthly rent to landlords. This advantage may help in creating long-term value for your business. 

Financial Stability

Another important benefit of utilizing an owner occupied commercial real estate loan is that it allows you to gain access to consistent, predictable monthly payments that can help you better manage your business cash flow. 

Additional Revenue Streams

An owner occupied commercial real estate loan is intended for businesses that occupy at least 51% of a commercial space, meaning the remaining 49% can be leased to other businesses. 

The rental income generated from the remaining commercial space may be a valuable revenue stream for your business, especially if you own a seasonal company with sales that fluctuate. 

Building Control

Transitioning from property renter to property owner gives your company control over how your business operates in its new space. You will have the ability to make any type of necessary building improvements to your business without restrictions from a landlord.

Partner With Texas Gulf Bank for Commercial Real Estate Financing Needs

If your business is ready to expand into a larger facility or take the leap from renting to property ownership, Texas Gulf Bank is ready to partner with you for your financing needs.

With over 110 years of experience providing financing solutions to businesses across the Southeast Texas Gulf Coast region, we understand the unique lending needs of business owners in the region.

We offer strategic loan options to facilitate your business growth, including owner-occupied commercial real estate loans and SBA 504 loans partially guaranteed by the Small Business Administration (SBA).

Texas Gulf Bank’s loan process begins with an initial consultation to discuss your lending needs, business goals, and commercial property information. Loan applicants will need to submit documentation including, but not limited to:

  • Budget for land and/or construction needs.
  • Three most current filed years of tax returns and financial statements for the company.
  • Most recent year-to-date balance sheet and income statement.
  • Personal tax returns from individual guarantors from the past three years.
  • A current personal financial statement.
  • Land plat/survey.
  • Construction plans, including building elevations.

After all documentation is submitted, Texas Gulf Bank analyzes and underwrites the request, and the loan is submitted for final approval. Our in-house loan review team may be able to expedite the review process to ensure a prompt and efficient lending decision. 

Commercial Real Estate Loans Owner Occupied: Speak With a Loan Officer Today

It’s time to get more from your commercial property. We may be able to help by identifying the ideal owner-occupied loan product that positions your company for business growth.

To learn more about pursuing commercial real estate loans owner occupied, or to speak with a helpful lender, get in touch with us today. You can call us at 1-800-467-7216, use our contact form, or visit one of our many local banking centers.

Contact us today to experience the Texas Gulf Bank difference. We are committed to helping you grow through our loan programs designed for businesses.

All loans subject to credit approval

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