Earlier this month, the Federal Reserve System’s Board of Governors, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency issued a joint warning that banks are weakening underwriting on commercial real estate loans. According to the regulators, some banks are allowing more underwriting exceptions and are not sufficiently monitoring market conditions. These regulators said that they will increase their scrutiny of lenders and may request banks to strengthen their underwriting standards, raise capital or better monitor their loans.
This announcement reflects only one of the changes in regulations and business conditions that can impact commercial real estate ventures in Minnesota including office buildings, shopping centers, condominiums and apartment buildings. These ventures may be at the mercy of numerous conditions and laws.
Financing has to reflect changes in regulations and the ups and downs in interest rates, banking regulations and the economy. Zoning laws can impact how commercial property is used. New construction codes can impact how a facility is built and occupied and whether it can remain in use. Tax rules evolve constantly.
Dunlap & Seeger has represented Minnesota developers in these ventures for 75 years. We remain abreast of changes in the law and the real estate market so that we can assist our clients in their ventures.
Our lawyers represent businesses and public entities of all kinds including municipalities, school districts, financial institutions, insurance companies and nonprofit organizations. Feel free to visit our Commercial Real Estate & Development webpage to learn about our firm.