Survey: Small Businesses Too Anxious For Commercial Real Estate
Anxiety and financial restraints have kept small business owners from purchasing or refinancing commercial real estate over the past two years, according to New York City-based bank holding company CIT Group Inc.
CIT's survey of small businesses regarding the commercial real estate market found that a full 52 percent have not even thought about buying property while 28 percent think buying real estate presents a "great" or "substantial" opportunity.
Depressed prices and low interest rates should be hard to resist, but economic conditions are forcing businesses to stay on the sidelines. CIT said 19 percent of survey respondents said they could not afford a down payment on a traditional bank loan for commercial real estate.
Only 13 percent of respondents said they were either very likely or somewhat likely to refinance any existing commercial loans.
CIT suggested flexible SBA loans could provide options to hesitant businesses, but just 23 percent of respondents indicated that SBA loans were "a good overall choice with no significant downside."
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