Sara Havlena

There will be equity capital available, but the numbers do not make sense for many deals in today’s market. Therefore, some investors will remain on the sidelines. That could change next year as supply waves are absorbed, since demand is not the problem. Anticipate a push toward opportunistic deals such as recapitalizations and rescue capital. Count on pref equity to be liquid and competitive, while JV equity continues to be difficult to come by. More

Look for more available capital for retail deals going forward. Transaction activity is improving and the return of regional banks to the market will increase competition and put downward pressure on spreads. Watch for lenders to become selectively more aggressive for properties beyond grocery-anchored retail and look at many different types of properties such as More

Condo financing will remain tough to come by. Recent government policies put a lot of pressure on construction costs, which brought the few projects in the works to a screeching halt. Although, sales and new construction had been slow even before the recent tariff policies. Count on lenders to be very selective going forward and More

Borrowers will see cautious land lending this year. Deals getting funded will most likely be acquisitions or recent acquisitions. Banks will be very selective on land loans and most of the capital will come from debt funds and private money. Lenders will strongly scrutinize the ability of the developer to obtain construction financing in order to assess the probability of being taken out of the loan. Expect land lending to return to more normal levels in 2026 and 2027. The timetable for development financing and securing the necessary equity to go vertical on projects will create the need for land loans the next few years. More