November 6, 2023

There will be plenty of capital in the market for construction, however, lenders will be heavily scrutinizing deals. Fewer projects, higher rates and regulatory issues have slowed the number of transactions being funded. The high cost of borrowing will also make construction lending more difficult. Banks and life companies will be in the market, although with lower leverage. Watch for more available capital from non-traditional sources to fill the gap. There will be a large number of construction projects that need capital next year. Anticipate lenders being more selective with who they will work with. More