Financing remains the big hurdle for most of the commercial real estate developers that work with the real estate practice group of Thompson Hine, a law firm with Midwest offices in Cincinnati, Columbus, Cleveland and Dayton, Ohio.
And Linda Striefsky, partner in the firm’s real estate practice group, says that she doesn’t see this changing anytime soon.
“If you set aside the top markets like New York and Washington, D.C., financing can still be a real challenge for commercial developers,” Striefsky said during a phone interview.
As the economy shows at least some signs of life, developers are ready to start tackling projects again, whether they are new or ones that were shelved because of the country’s recession.
Problem is, in many — most — markets, lenders are still reluctant to pass out those dollars to developers.
“It’s a have, have-not dichotomy,” Striefsky said. “If you’re in a hot market, there’s no problem getting financing. If you are an established developer with a long track record and impressive relationships, you can get refinancing money. But the other folks are the ones having a hard time getting traction.”
As proof, Striefsky points to large bank Huntington Bancshares. The bank is passing out some commercial development financing. But it’s only do so with existing clients. The bank isn’t interested in providing financing to developers with which it doesn’t already have a relationship.
And Hungtington is far from alone. That makes life still difficult for any commercial developers looking for the financing for new strip malls, mixed-lifestyle centers or office buildings.
