Understanding Commercial Real Estate Loans in a Rising Rate Environment

For entrepreneurs looking to lease or purchase space in premium office towers, the current lending landscape can be complex. Glass buildings in central business districts often command the highest premiums, but they also require the most sophisticated financing structures.

Bridge loans and mezzanine financing have become more popular as traditional banks tighten their lending criteria. It is essential to understand the Debt Service Coverage Ratio (DSCR) before approaching a lender for a multi-million dollar property acquisition.

We recommend consulting with a commercial mortgage broker who specializes in urban architecture projects to navigate the current volatility.