Banker Sees New Trend in Ownership vs. Leasing

MAITLAND, FL-Owners of small to mid-sized businesses are opting to own rather than lease their new space in an evolving trend, Chris Hurn, president and CEO of locally based nine-month-old Mercantile Commercial Capital, tells GlobeSt.com.

Hurn basis his prognosis on crisp lending activity that is occurring at his institution. Mercantile has closed six commercial property loans totaling $5 million in Orlando, Tampa, Jacksonville, South Florida and Puerto Rico. Another $11 million in loans is pending.

“We’re beginning to see a trend emerge in Florida for small to mid-sized businesses to own instead of lease their commercial property,” Hurn says. “This is analogous to eventually owning a home instead of just renting, but it is also the result of 45-year low interest rates; advantageous but relatively unknown lending programs (like the 504) becoming more widely known; and a desire of business owners (especially professionals) to locate nearer to their homes to avoid commuting to city centers.”