March 11, 2024

Construction lending should start to pick back up this year, although lenders will continue to be selective. Watch for lenders to be more open to retail and hotel development, while office will remain the toughest to finance. Look for lenders to put more emphasis on location going forward. They are going to be hyper-focused on basis and realistic rents. Debt fund and private money lenders will lead the pack and be the best bet for borrowers. Although, watch for life companies to re-enter the construction lending space as a way to grab yield. More