Sara Havlena

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

Look for banks, debt fund and private money lenders to tentatively finance condo deals.  Lending volume will be down because of fewer transactions overall in the condo market.  The lateness of the cycle will lead to lenders being very location- and developer-specific and pickier about which deals they will finance.  Leverage will drop to around More

There will be plenty of capital available for retail loans, but lenders may be more selective going forward.  After dealing with the fallout of online sales, the retail-lending environment seems to have stabilized to its new normal over the past 12 to 18 months.  Count on CMBS lenders to be the most active as some More

Anticipate life company lending volumes to be in line with or above 2018 originations.  LC real estate portfolios will be healthy, and executives are asking their teams for increased commercial real estate exposure.  Many are already starting to look at deals funding into 2020.  Count on life companies to snatch more multifamily market share as More

The amount of equity capital is at an all-time high, and increased competition will lead to investors being more accepting of lower returns.  Investors are confident in the combination of interest rates remaining low for the foreseeable future, positive trends in job creation, low unemployment rates and strong corporate growth.  Real estate is an asset More

Land financing will continue to flow as long as the market stays robust.  There is a plethora of bridge lenders entering the market every quarter and this competition tends to force an expansion of the collateral that lenders are usually not willing to consider.  There has been a lot of capital rushing into the market, More

Bridge lending will continue to be one of the most liquid sectors of the market as more and more new lenders constantly enter the game.  Keep an eye out for new bridge lending sources and evolving appetites as some buckets are filled.  Watch for more flexibility on prepayment as competition increases and the possibility that More

There will be no shortage of capital for quality hotel deals from banks, conduits, debt funds and life companies.  With increasing competition, lenders are trying to get money out the door, and there are more capital providers than strong deals.  Even though some lenders have reached their hotel capacity, others still have money to deploy.  More

Banks will be active construction lenders during the second half of the year, although markets that have seen significant supply within the last 12 months may see more caution going forward.  The majorbanks will be competitive but may reserve capital for their most active relationship clients.  Count on regulated lenders to be conservative with LTC More

Retail borrowers will see available capital from banks, life companies and conduits.  High-quality sponsors that invest in best-in-class assets with compelling locations in markets with strong job growth will have their choice of non-recourse capital at historically low interest rates.  Lenders seek properties occupied by the highest quality retailers deemed internet-proof such as grocery, pharmacies More

Small-balance multifamily lending will grow as the capital markets remain liquid and lenders scramble to get money out the door.  The small-balance multifamily space is well-positioned due to strong investment activity and a vast improvement in liquidity this cycle, due in large part to agency support.  Loan size limits will increase slightly, certain programs will More

Everyone is wondering how much longer this current economic cycle can last.  Will it be a black swan event?  The end of Libor?  An interest rate increase?  Or will it mirror Australia’s 20-plus years of stability?  Most seem to agree that unless some unforeseen event happens, there will not be a downturn for at least More