It’s no secret that commercial real estate (CRE) has seen significant fluctuations over the past five years. 

From the rush of opportunity that accompanied rock-bottom rates and the capital squeeze from subsequent rate hikes to the fluctuating demand for office space, CRE investors have had to navigate a highly dynamic market to remain successful.

As a relationship-focused BankUnited CRE banker, Jonathan Smith, has seen it all over the course of his 20+ years in financial services.

“I joined BankUnited in 2019, just before the ‘storm hit,’ and saw clients who had thrived in the pre-pandemic era have to find new ways of doing business to adjust to changing CRE markets,” he explains. “We went from building in-person relationships to having to solve significant problems together over Zoom.”

Jonathan knew unprecedented times called for creativity and perseverance — so when a CRE client needed help securing access to capital to fund a new construction project, he knew BankUnited was the ideal partner.

Jonathan’s client was a seasoned CRE investor with a robust portfolio. However, they had run into a significant bottleneck for a construction project they planned to develop: limited access to capital. 

Construction capital, can be at times, difficult to come by. Even if clients can secure the capital they need upfront, construction loans typically come with short repayment terms to help financial institutions manage risk — and it’s rare that one banking relationship can see a construction project through development and into profitability. 

However, long-lasting relationships are mutually beneficial for CRE investors and their banking partners. “A long-standing partnership gives me time to truly get to know my client’s business, so I can anticipate their needs to offer in-depth expertise and tailored advice,” Jonathan says. “It’s also personally rewarding for me: These collaborative relationships are why I went into finance in the first place.”

This client was understandably very cautious about their choice of lending partners, so it was crucial to deeply understand their needs and be able to provide solutions they could trust, he explains. BankUnited had pointedly expanded its offerings for construction capital, so it could provide exactly the solution the client needed. 

But Jonathan needed to act swiftly to succeed. Applications, approvals, and onboarding take time, particularly for complex construction loans. He needed to streamline the process to help the client meet their aggressive deadline.

By collaborating closely throughout the application and onboarding process, the client was able to secure a construction loan — and move ahead with their project. Building out this arm of the business also allowed the client to diversify their portfolio and build resilience in a challenging market. 

In a highly dynamic and fast-moving field like CRE, relationships form the foundation on which investors—and the banks that serve them—can build fruitful businesses. For Jonathan, building a strong rapport with clients is pivotal to each party’s success.

“So much of our job is rooted in education. My role is to deeply understand my clients’ pain points, so I can provide insights to help them map out the best path forward and connect them to the financial services and products they need to realize their vision,” he says.

Because CRE often exists within a complex lending environment, Jonathan needs to be there to guide his clients over the almost-inevitable bumps in the road. He explains that challenges can pop up anywhere in the process, from application to underwriting to onboarding. “That’s why client relationships continue long after we have made a deal -- I want to make sure we are always serving their needs and providing the support they need to reach their goals.”

Ultimately, Jonathan credits his success to his and BankUnited’s entrepreneurial spirit — and the ability to demonstrate the same grit and can-do attitude that helps his clients thrive. 

“At the end of the day, ensuring my clients know we’re in this together is important. Of course, every project is different — but staying flexible allows us to adapt to each client’s unique needs,” he explains. “In an industry where different institutions often offer comparable products, relationships become a crucial differentiator. That’s where our team excels—and we make a meaningful impact by setting our clients up for success.”