Some real estate lives on

While residential real estate continues to slump due to the subprime mortgage debacle, experts believe there is still good news for small business owners involved with owner-occupied commercial real estate.

Apparently the credit crunch affecting homeowners hasn't veered into the commercial real estate arena.

"The residential lending downturn has had no impact on SBA commercial real estate financing," said Chris Pettersen, vice president of U.S. Bank's Small Business Administration division.

Commercial real estate is still viewed as a solid investment for small business owners, especially in light of low interest rates and low commercial vacancy rates in the area. The Southern California inventory rate for commercial property is less than 2 percent, Pettersen said.

"The Small Business AdministrationLos Angeles District Office, which includes Ventura and Santa Barbara counties, provided more than $350 million in small business financing in fiscal year 2007, most of which was owneroccupied real estate loans," said Roc Caldarone, Wells Fargo senior vice president and regional business banking manager.

Due to a healthy regional economy, commercial real estate has long been strong in Ventura County, either going up or holding its value since 1996, according to Pettersen. And unlike the residential lending market, there's been no need for commercial real estate lenders to change their credit parameters.

Larry Nathanson, a certified public accountant in Westlake Village who has been in private practice 23 years, remains bullish on the business condo market.

"A business condo enables businesses to avoid the pitfalls of renting, provides the stability of one location and can be a business asset that is integrated into an exit strategy for retirement," Nathanson said.