Sara Havlena

Watch for lenders of all types to be bullish next year and fund anything they can get their hands on.  As long as nothing earth-shattering happens and favorable demographics such as low rates continue, the economy will move along in a positive trend.  Competition will be fierce, especially with the agencies back full swing in More

Count on equity investors to continue deploying plenty of capital for the foreseeable future.  Investors will focus on different investment types and diversify into new asset classes in order to grab yield next year.  Pref equity investments will be some of the most liquid capital in 2020, especially as a lot of JV equity groups More

Retail borrowers will see plenty of available capital from banks, life companies and CMBS lenders going forward.  While lenders will be cautious, many believe that the Amazon fallout has already played out and retail will stabilize.  There will be a continued flight to quality as lenders seek best-in-class sponsors that can mitigate risk by contributing More

Anticipate a strong mix of agency and bank capital for multifamily in 2020.  Life companies will also increase their allocations for multifamily next year by approximately $10B.  After a slowdown during the summer, the agency world has stabilized with new allocations of around $20B per quarter and they will resume competitiveness in the market.  Having More

Expect new bridge lenders to enter the market, especially as borrowers utilize bridge loans on a more frequent basis.  There are more debt funds being raised and life company lenders creating bridge programs.  Watch out for traditional equity investors entering the bridge debt market to grab yield.  There is a ton of money in the More

Developers will see plenty of capital come their way, however banks will be more cautious on LTC, while private money and debt fund lenders will push leverage higher.  There will be a strong appetite for construction loans with proven sponsors, especially multifamily projects.  Lenders will become more conservative with underwriting, while sponsors will be heavily More

Office lending will be brisk going into 2020 with banks, life companies and CMBS lenders all funding deals.  There will be continued demand for office as long as the economy is strong and rents remain steady.  Vacancy rates are low, with some markets enjoying single-digits.  Rental rates continue to increase, though slightly slower than in More

Hoteliers will see available capital for construction, especially from debt fund lenders that are filling the void left behind by banks.  Non-recourse capital will be available from non-bank lenders at higher rates.   Projects in strong locations with multiple demand generators will be desired.  Borrowers need to show a story that ties together the location, More

Multifamily development will be highly sought after as demand across the country continues to increase and evolve.  Construction debt and equity will be readily available, although very market-specific.  Lenders are also becoming more conservative with underwriting and looking closer at sponsor experience and financial wherewithal.  As multifamily supply continues to grow, lenders will become more More

Lenders are cautiously optimistic about hotel lending, and there will be an abundance of capital available for the right sponsor and strong properties.  Hoteliers will see 60% to 70% leverage.  Deals with subordinated debt will reach 85% to 90%.  Fixed rates will be in the 3.5% to 4.5% range, while floating rates will be 6% More

Industrial is the darling of the commercial real estate world, and borrowers will see lots of competition as lenders compete for the few deals that hit the market.  There will be plenty of debt and equity available for all types of deals including new construction and bridge.  The rise of e-commerce and changes in how More

There will be growth in bank lending as balance sheets remain healthy with very low default rates in commercial real estate.  Banks will have more opportunities throughout the rest of the year as life companies and agencies both become full on allocations.  However, given the cyclical nature of real estate, expect caution around development and More