• Fed Rate Cut:

    Time to Invest in Commercial Property?

    INTERVIEW WITH:

  • What impact does last week's interest rate cut have on business owners?

    Last Wednesday's announcement by the Federal Reserve that it would cut interest rates to a target of 2.0%-2.25% is great news for small businesses. It will lower the cost of capital for borrowers and encourage investment spending. In addition, because most small business loans are tied to variable interest rates, it means that their cost of borrowing will decrease.

  • "Small businesses that are currently leasing commercial space may find the decrease in interest rates as a great opportunity to purchase a business property."

  • What potential effect can this have on commercial real estate?

    For one thing, commercial developers will find it easier to finance projects. In addition, small businesses that are currently leasing commercial space may find the decrease in interest rates as a great opportunity to purchase a business property. This would allow them to build equity and take advantage of certain tax benefits that come with ownership of a commercial property.

  • Is there a window of opportunity that businesses have to take advantage of these recently lowered rates?

    This rate cut gives small businesses in Southern Nevada a great opportunity to seek finance. Typically, around summer and fall is best the time of year when businesses that need financing should have their strategy in place so that they can receive funds by the end of the year. This can put them in prime position to prepare them for growth for the following year, to purchase property, to fund the acquisition of a competitor, or simply to retire existing debt.

  • "Las Vegas is no longer considered a service town, but rather a place where non-traditional service companies are bringing unique, growth-oriented industries with a well diversified workforce."

  • As a lender to small businesses, why is the Las Vegas market so important?

    There are a number of factors as to why the Las Vegas market is ripe for a small business start-up, expansion, or relocation. The biggest one is that Nevada doesn't have a state income tax. In addition, Las Vegas is no longer considered a service town, but rather a place where non-traditional service companies are bringing unique, growth-oriented industries with a well diversified workforce. As more STEM (science, technology, engineering and mathematics) businesses continue to make Las Vegas their home, we should see a boost to the regional economy. Just like New York is known for its financial industry and Silicon Valley for tech, Las Vegas will be recognized for its burgeoning small business community.

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