I finally hit a 90% occupancy rate on my small strip mall and it changed my whole loan plan

For the longest time, I was sure I needed to refinance my main property to get a better rate, but I was stuck at about 75% full. Then, a new coffee shop and a dentist moved into the last two units last month, pushing us to 90%. My lender, a local bank I've worked with for a while, called me up and said that number basically unlocked a whole new set of loan options they couldn't offer before. Instead of just a simple refi, they're now talking about a cash-out deal based on the new, higher property value, which I could use to fix up the parking lot. I always thought the value was mostly about the location, but hitting that specific occupancy number was the real key. Has anyone else had a lender shift gears on them after hitting a certain occupancy or rent roll number?

2 comments

2 Comments

jenny_jackson6d ago

Lenders love to act like these numbers are magic, but it's just basic math to them. They see less risk so they offer more money, it's not that deep. The real win is getting the coffee shop, not the bank's new attitude.

derek_coleman6d ago

That's a solid win, congrats. It's wild how lenders have these hidden tripwires you don't know about until you hit them. My buddy had a similar thing happen when his average lease length passed a two-year mark.