Wolgast Blog - Construction Trends, Tips and Information

Commercial Property Financing

As I found out recently by talking to Steve Canole, Vice President and Business Loan Officer  at 1^st State Bank, there aren’t as explicit criteria for securing a commercial construction loan as there are  for residential mortgage financing.  According to Steve, there are many more variables that lenders need to consider when reviewing a commercial property mortgage compared to a residential loan which is more stream lined.  Primarily, these variables include whether it’s an investment property versus owner-occupied, the size of the project, the varied ways commercial real estate can be purchased and held, the various types of operating entities and how the owner chooses to operate and file taxes, and finally the loan/cost ratio of the project.

Currently, many Michigan auto dealers are feeling varying degrees of pressure from auto manufacturers to modernize their stores, some of which have never been renovated since they were originally built 50 years ago.  While remodeling can be an expensive investment in your business, there are several benefits that go along with the improvements.

Obviously, planning a construction project doesn’t happen overnight.  In most cases, the client has a set occupancy date when construction has to be completed either to satisfy a contract they have acquired or to meet their seasonal market (to name two).  During that construction project time frame, planning through completed project, there are five main activities that need to take place, which include design, cost estimating, obtaining regulatory approval, acquiring materials and construction. 

In light of our staff architect, attending the Health Facilities Planning Seminar this month, I thought it was timely to discuss what makes a contractor specialized in medical office construction.  To some people, all buildings with walls, floors and a ceiling are the same and the contractor shouldn’t make a difference when constructing it.  While I believe that it always matters who the contractor is and how professional and customer service oriented they are, obviously, most any contractor can build simple buildings (how much hassle you want to deal with is up to you).  However, a medical building is not a simple building.  The healthcare industry is highly regulated and uses a plethora of specialty equipment or med gases each with its own requirements.  Plus whether you’re dealing with a Patient Centered Medical Home or a surgery or endoscopy center, it’ll be easier to successfully achieve your goal

Adding a new, complementary service to your existing business structure can help increase your revenue during your regular business hours.  This is especially helpful for businesses that feel they have reached a maturity or decline stage.

Remember the good old days—a few decades or so ago—when a doctor could practice for 30 – 40 years and then sell his or her practice to another doctor when they were ready to retire, or better yet, have a son or daughter to take over the practice.  Jump forward to present time and it’s not as easy to find someone to take over a medical or dental practice.  The reality is there are far fewer doctors graduating than there are practices out there and doctors should start succession planning well before they’re ready to retire.

What Is Yours Saying?

It makes a lot of sense that your building emits an attitude and gives a first impression that reflects your corporate culture.  Immediately, visitors are assuming things about your customer service, quality, competency and staff when they come in your parking lot.  So why is it that some business owners aren’t aware of the message their building is sending?

Especially When Commercial Space Is So Efficient