An Introduction to Commercial Real Estate Financing


Discover the benefits of owning commercial real estate, basic information about purchasing commercial property, and how you can put your property to work for you and your business.

At Wells Fargo, you’ll find a wide range of credit possibilities for your business, from cards and lines of credit to long-term financing, secured or unsecured. Every business owner relies on key assets to help them succeed. They’re part of your competitive edge, which helps you stay on target with your business goals.

What’s your most important business asset? You might say your strong customer relationships, or your dedicated employees, or the unique products or services you bring to market, or even your drive and determination.

All this is true, and important, but when you own commercial property for your business, that kind of asset is in a different category. We’ll explore some of the benefits of owning, basic information about purchasing commercial property, and how you can put your property to work for you and your business.

Owning your own space and being part of a community is a great feeling. Go ahead and repaint the building, add a solar energy system, or update the equipment. Just knowing that it’s yours gives you peace of mind, so you’re free to focus on running your business.

And there are financial advantages, too. No one will ever raise your rent, so your operating costs are easier to predict and budget for. And you can see some tax benefits, depending on your situation. So in the long run, you may even save money compared to leasing.

Some property owners use their investment as a place of business, though for many entrepreneurs, investing in commercial property is a business in itself. If you’re primarily a real estate investor, you expect your property to produce income in the short term, and grow in value over time. Or if you’re like some business owners, you may do a little of both, using part of the space for your own operations, and leasing out the rest to someone else. However, if your business is growing and you don’t want a long-term commitment to one space, leasing may be the way to go. Or you may choose to lease because you need the flexibility to use your funds for other business needs.

Once you own commercial real estate, Business Real Estate Financing can provide the funding to help your business thrive at every stage of ownership. Consider refinancing your current property to take advantage of today’s low interest rates, refinance the balloon payment that’s due soon, or maybe take advantage of the cash-out opportunity to refinance business debt, or for other business needs. You might also use your equity for working capital, either in the form of a loan or line of credit, to pay for renovations to your property, or to purchase large equipment, or use it to take advantage of other business opportunities that can help your business grow.

Whether you’re looking to purchase, refinance, or tap into equity in commercial property, the details of the financing you secure can have a big impact on your bottom line and your future. Seek out a lender with the flexibility to choose terms that work best for you. For example, when you work with Wells Fargo Business Real Estate Financing, you’ll find a range of options that can help keep your costs low, including fixed or prime-based adjustable loans, terms fully amortized from five to 15 years, and five- or 10-year balloon payments, or an equity line of credit.

Whether you’re a business owner making the leap into ownership or leveraging your equity, or a seasoned real estate investor planning your next deal, at Wells Fargo, you’ll find the guidance and resources you need to make the most of your commercial property, and you’ll enjoy all the advantages of our local experience, broad and deep capabilities, and a commitment to helping businesses like yours succeed financially.