This article is written by Chris Schlaffman, VP of Commercial Lending, Clark County Credit Union.

Are you currently looking for a permanent location to operate your business? An owner-occupied commercial real estate loan can help you secure your business’ physical location. This type of loan is typically used for purchasing or renovating a property such as a store, office, or warehouse.

Just like with home real estate, there are benefits to owning a property versus renting or leasing. Keep reading to learn more about the advantages of owner-occupied commercial real estate loans for your business.

Build equity

Unlike renting or leasing, where the monthly payments go towards your landlord’s equity, purchasing your commercial property will help you build equity and therefore create a more stable financial future for you and your business. Equity is the difference between the value of your property and the amount you owe, which can be a valuable asset.

Lower interest rates

Owner-occupied commercial real estate loans often come with lower interest rates (assuming you have a good business credit score and history) than other types of commercial property loans. This is because most lenders consider this type of loan to be less risky as business owners are more invested in keeping their property well-maintained and making timely payments.

More control over the property

When you’re the landlord, you have more control over your property, allowing you to create a space that better suits your needs. You can also create and adjust the branding parameters without needing approval from someone else, though you should be sure to follow any association guidelines.

An owner-occupied commercial real estate loan provides numerous benefits to business owners. CCCU’s commercial team specializes in owner-occupied commercial real estate loans and has helped many local business owners in Southern Nevada. For more information about commercial loans, please visit www.CCCULV.org or call 702-228-2228.

Listen to a sit-down interview with a CCCU business member and franchise owner, Andy Kao, of Slater’s 50/50 on The Perfect Bite’s 88th episode.