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Real Estate Transactions

Special Aspects of Commercial Financing

Special Aspects of Commercial Financing

Learn about special considerations in commercial financing, including construction loans, development financing, and long-term leases as financing devices.


In this lesson, we’ll discuss two aspects of commercial financing that don’t often come up in residential settings. We’ll start with construction loans, which are used to finance commercial development. Then we’ll look at the use of long-term leases as financing devices.Construction Loans

Construction loans are used to finance the building of improvements on commercial property. In a typical arrangement, the construction loan provides short-term financing while construction is ongoing. Once...