Right now, we’re going to have a discussion with Isaac Grant about the current commercial loan market.
Bob Nelson, Eugene real estate investment broker
Isaac Grant, Eugene commercial loan officer
Bob Nelson: Joining me today is Isaac Grant. Isaac is my favorite commercial loan officer. He’s with Oregon Community Credit Union in Eugene. Isaac, thanks for joining me.
Issac Grant: Thank you, Bob. Pleasure to be here again.
Bob Nelson: Let’s go into the nature of the commercial loan market. People have heard rates and all kinds of things. You’re absolutely in it and capable of making loans on income properties that are spectacular. Kind of characterize the mortgage market right now, if you would.
Issac Grant: Yeah. Bob, it’s a very interesting time. Obviously, rates are all time lows, which we never thought we’d be saying that again after a few years ago. After kind of the uptick of rates over the past couple of three years, maybe they’ve kind of fallen out the other end now. And so that’s providing some great opportunities.
It’s also providing for some people some caution, and I think it really at the moment depends on property type as to kind of the strength of different… So there’s almost kind of different sectors of the commercial real estate market at the moment. Some are very strong. Some people are very much more cautious on depending on type of business, length of ownership, type of property. It’s an interesting time in the commercial investment space.
Bob Nelson: Well, as with every recession that I’ve been through in my 52 years of active commercial real estate brokerage practice, multifamily is really the darling and the sweetheart of the recession. It was the one that was hit kind of quickest because our governor put a moratorium on several things, kicking out people who couldn’t pay rent, that were impacted by the virus, and so forth. And that spooked a bunch of people, but in the long run and the short run, multifamily is probably the sweetheart. And I would guess that’s your position also.
Issac Grant: Yeah. It’s very interesting, Bob. Last year with the bills that were passed in regards to rent control, we saw people actually moving away from multifamily into more triple net type investments. But now this year, due to, like you say, some of the moratoriums and what have you, and some retail businesses struggling, we’re actually seeing people swing back the other way. And they’re trying to get out of some of the triple net investments into what they see as a safer play in the multifamily space again. So very interesting time.
Bob Nelson: Will you join me again tomorrow?
Issac Grant: Absolutely. Yes, sir.
Bob Nelson: Outstanding.
Join Eugene, Oregon, real estate experts: Bob Nelson, Real Estate Investment Broker with Pacwest Real Estate Investments, and Marcia Edwards, Residential Real Estate Broker with Windermere Real Estate, daily at 5:30pm on KPNW for the “Real Estate Today” radio show.