• Lending conditions continue to remain tight for commercial real estate investments. This is especially pertinent for small businesses and investors looking for properties in secondary and tertiary markets.
• In the wake of the post 2008-09 recession shakeout, large banks have been reluctant to underwrite commercial real estate investments.
• According to the 2012 Commercial Lending Survey, large national banks accounted for only 21 percent of commercial deals.
• In contrast, local banks provided the bulk of financing capital for commercial deals, with 64 percent of closed sales.
• Private investors and regional banks were the other major sources of funding, with 45 percent and 44 percent of sales, respectively.
• The Small Business Administration provided funding for 29 percent of closed transactions.