As someone who works in the commercial real estate industry, you are always on the lookout for ways to have outstanding relationships with all of your business partners. In addition to the vendors and clients that you work with on a frequent basis, it's also wise to develop a lasting relationship with your banker. Whether you are getting ready to apply for a commercial real estate loan or you are hoping to grow your company, your real estate business banker is there to assist.
To learn more about the current trends in the real estate business banking industry, as well as how you can bolster your connections with your banker in 2023, consider the following points.
Financing for “Green” Projects is an Option
Focusing on "green" projects is certainly an important and current trend that applies to both commercial real estate and the banking industries. If your commercial real estate company is making energy-efficient improvements and/or working on renewable energy projects, the Commercial Property Assessed Clean Energy (C-PACE) program may help you get the loan you need for the job. Through this financing structure, you will make repayments through an assessment on the property tax bill.
Look for One-Stop Shop Commercial Real Estate Banking
Another current trend in commercial real estate business banking is banks that offer all of your financial resources and loan options in one place. For example, Western Alliance Bank features a number of commercial real estate financing solutions under one roof—this includes term financing for acquisition and development and loans for construction projects. In addition, the bank offers real estate loan funding for a variety of properties like multifamily, office, retail, and many more. This one-stop-shop approach means you won't have to work with multiple banks for your different financing needs.
Schedule an In-Person Meeting with Your Banker
Regardless of what type of commercial real estate loan you need, or property you are working on, it's vital to develop a solid working relationship with your banker. One way to do this is to set up a meet-and-greet. Rather than communicating solely through emails or over the phone, try to set up a face-to-face appointment where you can go over everything that your commercial real estate company does, including the details of your business plan. This personalized approach will help ensure that your banker will remember you as more than merely a company name, which can benefit you if and when it is time to apply for a loan.
Ask for Advice on Growing Your Company
Your real estate banker can do more than help with the loan approval process—they can also help advise you on how to grow your commercial real estate company. A commercial real estate banker is typically on top of the current trends in your industry, and can share advice and opinions based on what has been successful for other real estate clients.
Check in on a Regular Basis
Granted, you and your banker are both busy people. But to encourage a great working relationship with your commercial real estate banker, set up a phone appointment every couple of months. You can use this time to talk about the industry, what plans you have on the horizon, if you should automate your payroll with a software program or through the bank, any advice or guidance the banker might have about interest rates and loans, and anything else you wish to discuss during the call.
Your Banker is a Key Partner in Your Company’s Success
In order for your commercial real estate company to grow, it's important to not only be aware of the current trends in the loan industry, but also to foster a positive relationship with your banker. Start by choosing a bank that can assist you with all of your financial needs, and create a strong working relationship with your banker—it will definitely pay off in 2023 and beyond.