Commercial projects that were moving ahead at full force three months ago in the Indianapolis real estate market are now struggling with the loan providers to secure additional funds to keep the projects moving. The commercial property owners and developers are still at peak interest levels, but some are being forced to wait it out until the process to obtain loan dollars is not perceived as so risky by the creditors.

The only solution seems to be to relax restrictions of the current credit pinch to allow bankruptcies and foreclosures to affect little impact on the overall credit rating and ability to obtain new commercial loans for Indianapolis real estate. In fact, if the lenders are going to hope to remain in business, they are going to have to take risks like the rest of us, and assume that a potential borrower’s job is secure and base credit extended to them on current income and current financial liabilities. Basically, past credit history is going to have to be a wash for the credit market in this economy to recover.

Combined with state and local taxes that are lower than the national average, the relatively low lease rates for commercial space Indianapolis area is continuing to attract new and established business to the downtown areas. Even if deciding to rent, rather than buy, in the Indianapolis real estate market, new businesses are finding the same difficulties in securing a business loan. Blemished credit, bankruptcies and foreclosures are impacting every aspect of business.

Despite the stagnancy of the lending market, commercial interest in the downtown Indianapolis real estate market still remains strong. Fortunately, there are still people out there with money to invest, and the Indianapolis real estate areas have traditionally, even as recently as January 2008, held fairly stable local economic statistics. The previous strength of the local commercial construction market has helped keep the unemployment rate relatively low, which is still appealing to local and outside investors, and they are willing to hold on projects, with the knowledge that the overall local economy will resurge. It’s just a matter of time.

Meanwhile, suggestions for improving current property values in the Indianapolis real estate areas are being acted upon with urgency. The drive to update and renovate older properties is shifting some of the lull in the real estate market to property management issues, and this is good news for the displaced real estate agent. Former, or temporarily sidelined, agents with years of experience in what sells are redirecting that knowledge to aid in “what leases”.

For many years, many Indianapolis real estate agents have also been property managers in the rental industry. As more and more people find themselves without the same level of income as they previously enjoyed, or even as they watch for the signs of relocation of their current, stable job or business, the amount of properties available for lease will need to increase.

Again, as we all continue to trudge thru the fallout from what is hopefully the final bottoming-out of the market in Indianapolis real estate, the key to rebound is going to be the lenders’ willingness to accept less than perfect credit for loan acceptance. This practice, along with good faith practices of offering loans to consumers that are not beyond their financial means, will strengthen both the commercial and personal economic state of the local community.