Crowdfunding for Commercial Real Estate
Crowdfunding as a method of funding for commercial real estate continues to grow in popularity, accounting for billions in financing in 2019, including commercial real estate funding. While commercial real estate loans from conventional banks have grown steadily from $1.4 Trillion in 2012 to a peak of $2.3 Trillion in late 2019, crowdfunding continues to grow:
- $16 Trillion base value of US commercial real estate
- 70+ Billion total square feet in 2019
- $85.2 Billion in commercial construction in 2019
Benefits of Crowdfunding for Commercial Developments
Why is real estate crowdfunding a growth source for raising capital? Well, there are many benefits for commercial real estate projects, including:
- Broad access to capital
- Little to no debt service
- Ability to set your own financing terms
- No limitations set by big-bank bureaucracy
- Equity-backed investing for owners and investors
- No fear of foreclosure
- Flexible funding options attract accredited and non-accredited investors