Owner Occupied Commercial Real Estate Solutions for Businesses
April 5, 2023
Your company’s growth plans may include multiplying your customer base, expanding product lines and services, and tapping into new business opportunities. But can your current physical location support these goals? If not, it may be time to expand your existing footprint or relocate to new commercial property to meet your goals and foster long-term growth.
Discover the benefits of supporting your plans with owner occupied commercial real estate financing. We’ll review the most important factors to consider when making future plans.
Also, learn how Texas Gulf Bank can help you identify the best commercial real estate solution that fits your needs. Find out how we will partner with you to help secure strategic funding.
The Benefits of Owner Occupied Commercial Real Estate
It makes sense to lease commercial space when your new business is just starting. But over time, your established business might consider expanding or moving to a property that better meets your current needs. There are several reasons why it may be time for your business to expand your presence, such as:
- Outgrown your current location
- Current space is landlocked
- Desire for closer proximity to specific markets and communities
- Outdated buildings and amenities
- Zoning restrictions that limit business growth
- Unfavorable lease agreements
- Rising rent payments
With owner occupied commercial real estate, you may no longer have the need to rent business space and instead, purchase an existing property or build a new property to occupy as your new business location. An owner-occupied property may offer more control to business owners and may come with several potential financial advantages, including:
- Building equity in your property instead of paying rent
- Renovating or expanding the property to support business growth
- Ability to increase product lines or services offered
- Renting out unused space to strengthen cash flow (within owner-occupied limits)
- Tax advantages for property ownership NOTE: Consult your tax advisor for specific IRS rules of eligibility and any potential tax benefits/savings based on your particular situation.
When your company is on the cusp of reaching new company milestones and goals, you want to make sure your commercial property will help you fully capitalize on your success and not hinder future growth.
Commercial Real Estate Considerations When Moving to a New Location
A review of your options may indicate that it may be time to leave your current space for a different location.
Businesses that are ready to move into new commercial real estate property have two primary options to choose from: constructing a new facility that meets long-term business needs or buying an existing commercial facility.
To determine which option best fits your needs,consider factors such as:
- Future growth projections
- Major contracts or long-term client agreements
- Available space for future expansion
- Current construction costs
- Real estate market prices
For example, client deadlines for long-term projects might prevent you from waiting for new construction to be completed, so you need to move into an existing commercial real estate property. Alternatively, you may anticipate future upgrades to larger equipment that require building out a new facility with ample room for growth.
Regardless of the path you choose, one of the most important factors to consider for your future commercial real estate property is your long-term cost.
You will need to consider the property loan options available for land purchases and construction costs compared to buying an existing facility and the renovations or upgrades necessary to make the existing space functional for your business needs.
By comparing the construction cost per square foot to the sales price per square foot, you may avoid overpaying for your property.
Financing Options for Your New Property
Once you’re ready to move forward with buying owner-occupied commercial real estate, Texas Gulf Bank is prepared to help by offering you strategic, cost-effective financing options that line up with your business situation.
We proudly offer conventional owner occupied commercial real estate loans and SBA 7(a) or SBA 504 loans backed by the Small Business Administration for small businesses that qualify.
The loan pre-qualification process includes an assessment of your business history, organizational chart, and proof of ownership and business liquidity. During the loan process, we will ask for the following financial documentation and information:
- Completed loan application
- 3 years of business and personal tax returns
- 3 years of income statements
- Most recent year to date balance sheet
- Historical cash flow
- Profitability that supports loan repayment
- Current Personal financial statements from loan guarantors
- Contracts or purchase orders from new clients
- Construction plans and land appraisal
- Builder information
- Construction budget for new builds or renovation
Once all documentation is submitted, our experienced team of local lenders will review all required documents and submit the application for final in-house approval. We tailor our services and loan solutions to fit your needs so that you receive the support you need for your specific situation.
If approved for financing, you can expect a streamlined funding process so you can move forward with your property plans.
Find Commercial Real Estate Solutions with Texas Gulf Bank
With over 100 years of lending experience, we are committed to helping business owners in the Texas Gulf Coast region find owner-occupied commercial real estate solutions to support business growth.
If your business is in need of owner-occupied commercial real estate financing, contact Texas Gulf Bank to schedule a discussion or begin the application process. We look forward to strengthening your business and helping you grow!
All Loans Subject to Credit Approval