Great observations on the commercial market. I would like to share my observations on the financing side of the commercial real estate market.

First, I want to point out that contrary to what many believe, there IS money available to the commercial market. That includes money for smaller projects, as well as money for large Acquisition and Development deals. There really is no limit to the amount of funds available.

Unfortunately, the media has a great deal of influence over a great deal of business owners, entrepreneurs and investors. So much so that many actually believe what the media says.

I won’t go on a media rant here, but it needs to be discussed because it does impact the market.

Coming from the financing side of things, I think the commercial real estate market is undergoing a change. A fundamental shift that will impact the market going forward.

Let me take you back to the 1980’s and the Savings & Loan Crisis. For those who were around back then, you may recall that prior to the S&L Crisis most Americans obtained financing for their home from their local Bank.

However, during the S&L Crisis Banks stopped funding residential loans. Did this mean people could not find financing for their homes?

Did the money simply disappear once the Banks stopped lending? No, it didn’t disappear. It simply moved.

Money does not disappear! It simply moves.

The Residential Mortgage Broker stepped into the market and began filling the void left when the Banks stopped funding.

As a result, Residential Mortgage Brokers became more prominent, and today maintain the lions share of all residential loans.

Fast forward to today. Banks have stopped funding commercial loans. The CMBS market has all but disappeared.

According to the media, the frozen credit markets translate into no commercial real estate funding being available.

According to the media, commercial real estate money has disappeared.

But money does not disappear. It simply moves.

And in this case it has allowed a relatively small Commercial Mortgage Brokerage to become the largest commercial real estate funding source in the Country.

How do I know? Because I happen to be a Branch President for this company, and I know firsthand that while others in the market have closed their doors, we are experiencing explosive growth.

The Banks will eventually get back in the game. But we are creatures of habit. We don’t like change.

And for all of those who are obtaining their financing with our help, it is my belief they will be less likely to go back to the Banks.

Much like what this Country experienced after the S&L Crisis, I think we are in the midst of a fundamental shift in the way commercial real estate is financed.

Because we have access to commercial money the Banks will not be able to match, the door that has been opened by our current economic crisis, is one we intend to keep open for a very long time.

Additionally, with Developers, Business Owners and Entrepreneurs experiencing better customer service to go along with financing when they need it, in times of economic difficulty, Banks will find it very difficult to wrestle away the market share we are grabbing.

If I were a Commercial Real Estate Professional, I’d make sure I found someone like me to partner with now, and going forward to better secure your future as well as your clients future.

We are here to stay! And those that recognize what is occurring in the market, are the one’s that will also grab market share.

I think Warren Buffet said it best when he said, “You want to be greedy when others are fearful, and fearful when others are greedy.”

Most people are fearful today. No thanks to the media. Now is the time to grab market share. Not sit around complaining about the economy.

I would urge everyone in the commercial real estate market to turn off the 6 o’clock news. Toss your newspapers in the trash.

The people writing most of those columns have never owned commercial real estate. They have never sold commercial real estate, and they have never been on either side of financing commercial real estate.

So why let them tell you what’s going on in the market? If you want to sell more commercial real estate, then get out there and do what you love.

Are you allowing the media to dictate your actions, or do you see the opportunities staring you in the face?

Commercial loans are being funded every day. You can’t say there’s no financing. Not to me. So if good loans can get funding, why are you not involved in these transactions?

Because the media says there’s no money?